Dov Charney Is Delusional
Skeevy entrepreneurial icon Dov Charney holds a majority stake in our favorite financially teetering retailer, American Apparel. The company—without Dov Charney at its head—could be attractive to buyers. But Dov prefers to wait it out. He's an optimist!
Earlier this week, AA's latest financial filing confirmed that its cash problems still leave its ability to continue as a "going concern" in doubt. So, just to be clear, there hasn't been a miraculous recovery while you weren't looking. Nevertheless, an anonymously-sourced New York Post story today says that Dov is "reluctant" to give up his majority stake, even though that would probably be a condition that any angel investor would demand.
Charney "wants to wait it out and is hoping the situation improves," one source close to the company told The Post...
Given the retailer's depressed results and widely recognized brand, "you could say the stock is way undervalued and a lot of people are interested," according to the source.
Dov, we know you don't listen to us, but here's a tip: you're a very successful entrepreneur who built a very successful company. And then ran that company into the ground. Also, you're PR poison. Only a lunatic would invest serious money in AA while you remain at its head. You don't really have time to wait around for that lunatic Santa Claus to appear. Turn it loose, already. You had a good run, in your own way.
