busblog

nothing in here is true

  1. Monday, January 25, 2016

    Statement By Dov Charney Regarding American Apparel Bankruptcy Ruling 

    dov

    LOS ANGELES, Jan. 25, 2016 /PRNewswire/ 

    I am obviously disappointed by the judge’s decision to confirm the debtors’ reorganization plan and hand ownership of American Apparel to its bondholders.

    This outcome is one that I have been working tirelessly for nearly two years to avoid in an effort to protect value for the company’s various stakeholders. Now all stockholders will have their shares and value extinguished.

    Many of the company’s loyal vendors will recover only cents on the dollar of what the company owes them. And the company’s workers, faced with current management’s inability to generate profits, face a highly uncertain future.

    It is without question that the debtors, Standard General and the bondholders carefully orchestrated a strategy to pass the Company over to the bondholders without exposing it to fair market test or bidding.

    american apparel

    This outcome was the only logical and unfortunate conclusion of many months of pre-bankruptcy preparation on the part of the bondholders and the company’s board.

    Here the bondholders and current management effectively used Chapter 11 as a defensive measure to thwart my efforts.

    This goal was pursued despite the many alternative pathways and opportunities to preserve value.

    As evidence of the lengths the Board went to in facilitating its scheme they filed a “lock – up” agreement, prohibiting secured creditors and bondholders from considering alternative offers.

    american apparel

    Chief Judge Shannon was clearly concerned about the Company’s failure to undertake any marketing effort and on November 19 he ordered them to market the Company. Although the Debtors were uncooperative even after the Court’s order, through intensive efforts with our financial partners, we submitted-a bid that was demonstrably superior to the Debtors’ filed plan. Indeed, the Court said in its ruling that if American Apparel were for sale, the Court would not have hesitated to send the parties back to the auction table.

    The Debtors then increased the economics to match the offer, but refused to engage in further negotiations. They then embarked on a scorched earth campaign to block further bids, subjecting myself and my financial partners to days of depositions during the waning days of the already truncated marketing process. In short, they did everything possible to curtail all efforts to bring fair, reasonable value to creditors.

    american apparel

    Since relocating American Apparel to Los Angeles in the late 1990’s from South Carolina I was bucking conventional wisdom by trying to preserve American manufacturing jobs and keep apparel manufacturing in the United States. Even though everyone else was moving jobs offshore, I was able to build and grow a profitable apparel business by manufacturing domestically. At every step along the way people challenged me and said I was crazy for trying. American Apparel was one of the only companies that shattered the sweatshop paradigm by paying fair wages, and did so at scale. By the time American Apparel went public in 2007, it was running the largest operating apparel manufacturing plant in the United States.

    For these endeavors I remain justifiably proud.

    There was logic to the company’s unconventional business strategy as evidenced by the company’s historic earnings.

    sass american apparel

    Until I was removed as CEO, the company had posted positive EBITDA (earnings before interest, taxes, depreciation and amortization) in nine of the last ten years.

    There were many other things that we did differently at American Apparel, besides manufacturing domestically, in which we were ahead of the times.

    Whether it was deploying RFID technology in our retail stores, fulfilling e-commerce orders direct from retail stores, or opening stores in emerging neighborhoods before they were recognized as attractive retail markets (just a few examples among many), we were often ahead of the curve.

    It was because our organization respected and celebrated creativity and unorthodox thinking that we were so successful, and I was committed to protecting this spirit of contrarian thinking.

    american apparel

    When the Company’s board removed me as CEO in June 2014, I was midway through what was shaping up to be a successful recalibration of American Apparel’s business. The process of my disenfranchisement ultimately resulted in a wealth transfer from the Company’s shareholders, vendors, and employees to hedge funds, lawyers, and bankers.

    The company was rebounding from a catastrophic distribution center shift implemented by the former CFO and was on track to post a positive operating profit in the second quarter of 2014, and on track to hit its earnings guidance for the year of $40 million EBITDA.

    With the company’s bonds trading down because of the uncertainty around the success of the turnaround, I believe I was pushed out as CEO because of pressure that the bondholders exerted on the company’s then CFO and board of directors (As I have alleged in my litigation, I maintain the view that the then CFO, John Luttrell, conspired to sell the company behind my back and to that end disenfranchised me as a shareholder during the June 2014 annual meeting by way of a misleading and fraudulent proxy).

    american apparel

    The resolute goal of the bondholders was to sell the company so they could profit, but I had to be pushed out of the way since I was the company’s largest shareholder.

    I was not willing to give up, and I attempted to regain control of the company because of my concerns that the company was still in a very vulnerable position with its turnaround not yet complete.

    I feared, with good reason, that the new management, not understanding what made American Apparel successful in the first place, would try to run the company in a more “conventional” manner.

    Because the board and new management did not appreciate that a vertically integrated domestic manufacturer had to approach business in a fundamentally different fashion, I felt that the company’s future was in serious jeopardy if they ran it like a traditional retailer. For this reason, I entered into a partnership with the hedge fund, Standard General, to regain control of the company. I could have assembled a coalition of shareholders to force a change at the board level, but given the urgency of the situation, I decided to surrender part of my economic interest in the company to regain control quickly.

    american apparel

    When Standard General did not deliver on their promises to reinstall me as CEO by late summer 2014, even though they had appointed new directors constituting a majority of the board, Standard General said I could buy them out of their investment. When I showed up with investors to do precisely this, they said that they could only support a go-private transaction for the entire company.

    In December 2014, a private equity firm offered $1.30-$1.40 per share to take the company private. The board rebuffed this offer as well, as offering inadequate value to shareholders for a company they said was worth much more. Instead, the board pursued a path where only a year later the shareholders are receiving zero. The offer that I made in conjunction with Hagan Capital to purchase the company was just one in a long list of offers, and there was no reason to believe that this one would end any differently, given the powerful forces steering the company towards a reorganization where the bondholders end up owning the company. While many parties close to me feared that this would be the outcome of my partnership with Standard General, even they could not fathom such a reversal.

    american apparel

    While outside observers might not yet appreciate it, I believe the path being followed by the company’s management is a road to ruin. The financial results of plummeting sales and EBITDA thus far support this. Management attempts to explain away their abysmal financial performance, as the result of inadequate liquidity, but the truth is that they misunderstand the unique business model that American Apparel must pursue as a vertically integrated domestic manufacturer.

    Their losses are self-inflicted, the result of poor decisions, made by executives who are learning as they go. Part of me can scarcely believe that a court could confirm their plan as feasible given the operating performance of the business under their management and 18 months into their turnaround plan.

    But while the bondholders are likely to be put in a position to throw good money after bad for consciously pursuing this path, I worry for the manufacturing workers and the business community who are the collateral damage to this corporate drama.

    american apparel

    I’m proud of the creativity and innovation that American Apparel fostered over the years. We made important strides in the areas of ethical manufacturing and art as they intersect with commerce.

    The sad reality is that American Apparel, the largest garment manufacturer in the United States, will not survive at this pace and I don’t believe the current management has the talent to bring it back to health.

    At the end of this saga, I, like the many former stockholders, will most likely be left with nothing. Despite that, what gives me great optimism are the things I possess that can’t be stolen by a predatory hedge fund – my ideas, values, drive, authenticity, integrity and my passion. To that end I ask that my supporters stay tuned.

    Dov Charney
    (213) 923-7943
    dovcharneypersonal@gmail.com

     

  2. dear tony, could you date rihanna? 

    rihannait would be tough to date rihanna, not because i’m pretty bad at handling high maintenance ppl,

    but because my mom doesnt like her.

    which is sad because there arent all that many black super dooper pop super stars in the world

    and youd think shed be rooting for her

    but the day my little niece around the monopoly table started singing

    bitch better have my money

    was pretty much the last straw.

    riri’s travel wouldnt bother me, i’m self sufficient and sometimes the xbi… well lets just say sometimes the busblog is written by committee.

    deep down we understand why rihanna is the way she is. if i was one of the prettiest women in the world and every year or so my records just blew up, and every tom dick and harry was trying to get their dick in me, and i was rocking the courtside seats and just getting prettier and prettier magically and kanye and paul mccartney and lord knows who else wanted to perform with me, and i was getting grammys and co-starring in Battleship

    it would either turn me very humble, or the opposite of that.

    especially if i looked smoking hot in a rain coat.

    could i date her? yes. should she date a blogger? no. would we be a match made in heaven? probs. would i take her to isla vista? no. thats my little special place. would i let rihanna help me build a Motel California on del playa?

    hmmmmmmmmm

  3. Sunday, January 24, 2016

    katy perry strolled over and said how long you been sick 

    katy perryi was all, im not sick, im fit as a fiddle.

    she said i can even see through bs. how long have you been sick?

    she had her hair up like i like it, a full tray of adult beverages including my favorite

    a thick stout salt rimmed glass filled to the brim with margarita.

    it was blue with a gold top.

    or was that her.

    i said for so long.

    she said the only way out is through, but that you knew.

    she asked why do you have two tvs in your bedroom

    i said because i havent saved enough for the third.

    even though we’re allegedly in the middle of el nino, it hadnt rained in a while and we even had the window open

    the drapes floated in the breeze

    and i hopped up to refresh the drinks.

    all i knew was the kittens seemed so happy just snoozing on the leather couch in the living room not giving one care what was happening over there.

    or over there

    or there

    or here

  4. why donald trump will lose by one vote from being president 

    donald trump

    we all have self esteem issues.

    which is great otherwise we’d all be insufferable assholes.

    the fact that donald trump truly believes that he will build a wall

    a great wall

    and have mexico pay for it is rooted in the same belief he has

    that he would make a great president of the united states

    even though he would be a disaster

    and probably gang-stabbed by the masses like caesar before his first term was over.

    he is winning in the polls because he is winning in our hearts.

    he is the voice that we wish we had when we are hit with tough obstacles

    “my haters love me. my opponents are losers. my whole life’s on fleek.”

    “i can’t be bought.”

    only that last thing matters.

    because money (and not great ideas) makes the world go round,

    everyone else in the race has to pretend that corporations and evildoers are

    not

    lining their pockets with literally millions and millions of dollars.

    we always knew that was fucked up but we resigned ourselves to the concept

    that money is speech and there was nothing else we can do to stop it.

    theres always a way.

    and the new way is hire a billionaire.

    but unlike most billionaires, donald trump has a way with words.

    he’s also believable, entertaining, and weirdly the guy next door.

    we’ve definitely sat next to a loud mouth like him at a ball game.

    his only problem is he has no experience in this realm, he takes bad advice,

    and many fear he is a little too trigger happy in regards to nuking countries who also have nukes.

    what donald trump is doing, though, is pushing the envelope so wide that someone

    who once would have seemed super radical

    next to trump, seems palatable.

    that super radical is def not secretary clinton

    but it’s bernie sanders,

    the sort of crazy this country just might need right now.

    if you dont think america is nuts you arent paying attention

    voted for bush twice, then obama twice

    and its allowing there to be a discussion about the DH in the NL.

    if you drug tested this nation its piss would be dirtier than tap water from flint michigan.

    the only thing american like better to do than watch football, buy guns and drink bud light

    is voting for the most extreme person running for president

    we want the world and we want it now

    larry david is going to have the best

    four years ever

  5. Saturday, January 23, 2016

    im clogged up 

    michael jacksoni have to write some things but theres a blockage

    two weekends in a row i just wanted to stay in bed and not do anything

    dont wanna uber, dont wanna write, dont wanna change the world, dont wanna text this pretty girl and take her to mcdonalds, dont wanna see rock music at the echoplex

    dont wanna see movies at the theater

    dont wanna do the thing that’ll make me a little extra on the side

    dont wanna do laundry dont wanna put things up on sals wall dont wanna read books

    dont wanna play nba2k2016

    i barely wanna go to the kitchen and crack open another mexicoke, but a mans gotta breathe

    today i watched the doc about all those kids who lived in an apartment in the LES and never left

    The Wolfpack

    then i watched the doc about Keith Richards where he travels the world and sheds new light on blues, country, and rockabilly

    i didnt know how much my man tom waits was gonna be in there.

    it was good but not as good as The Wolfpack which was bizarre and beautiful and shed a light on the human condition and how tick tock it wont stop. how if you stick us in a closet we’ll turn into psychedelic mushrooms and the longer we’re in there the more potent we will be.

    these kids love movies so much i wish i could send them all of my dvds that i dont watch any more.

    they taught me i should wear suits more and trench coats.

    hard not to respect a man in a suit and a trench coat.

    and then give them the benefit of the doubt.

    who doesnt want the benefit of the doubt.

  6. todays music is trash and i feel bad for the kids 

    there are very few exceptions. this tune from Walk The Moon is one of them.

    stupid name, stupid look, weird mix of The Edge and the Jackson 5 guitar riff

    freaking synth solo near the end of the song

    but ridiculously catchy.

    the official video has over 160 million views, but none of their others come even close to that.

    truly a one hit wonder, who could have easily come out with this and the video in the 80s

    and had just as much success.

    perhaps thats why this works so well: it’s an 80s song

    todays music is doomed.

  7. Friday, January 22, 2016

    heres the thing about me and love 

    ditkathings start off great. in monopoly you get money, a car or a thimble or a hat, and you get to roll.

    with me, i pretty much already love you. why? who knows, why do you get money in Monopoly? cuz you just do!

    but as time goes by if you treat me poorly i will start not loving you. this can spiral.

    but odds are i love you. this can increase if you make food for me, clean my apartment, treat me like a human, or let me put my hand on your thigh as we drive down PCH.

    i’ll also love you if i just drank a bunch of Mexican Coke.

    or if the Cubs just won a close game.

    or if theres something good playing at the Vista.

    or if someone just hands me a bowl of banana creme pudding.

    or if theres something good on the radio.

    or if the Muffs are about to play the Echoplex

    or if the taco from the taco truck doesnt get me sick.

    or if you text me nudes when i least expect it.

    or if you let me put a washer dryer in my apartment after 15 years of having to go to the coin laundry.

    or if you put Pete Rose into the Hall of Fame where he deserves to be.

    or if you dress like a hooker and get me chinese food on my 30th birthday because im freaked that ive entered old age.

    or if your band truly has a dual guitar attack.

    or if you retweet my tweet instead of like it.

    or if you legalize weed and stop the war on drugs.

    or if you win the super bowl for walter payton.

    or if you love the poor and give them good things.

    or if you skateboard over a broken down car thats on fire.

    or if you make a movie that gives me hope and has me singing the theme song in the parking lot.

    but if you dick me over royally i’ll hold it against you forever even if it kills me first.

  8. they dont want you to enjoy your weekend 

    5zNTgbti have a lot of things i have to write this weekend

    a couple are for LAist, and one is to save college journalism.

    theyre actually not that hard to do which is maybe why ive been dragging my feet on them.

    procrastination is such an interesting phenomenon.

    i wonder if it’s truly what separates us from apes.

    do you think monkeys see a banana tree in the distance and say, yeah as soon as i watch this here sunset then i’ll monkey my way over there and eat some damn bananas?

    i sure know with my cats if they see i forgot to tuck in the strings from my hoodie they waste no time leaping across the room to attack it.

    and chew it. and get it stuck in their claws and slobber all over it.

    but humans, we think of other, less important things to get in our way to achieving our goal.

    i woke up sweating this morning which is something i used to do all the time when i was younger.and it sure is weird to have that happen in the winter with just one blanket and no hot babe next to me.

    back when i was in frisco living with the truest i used to soak the bed with sweat all the time. poor girl. in the middle of the night she’d wake me up and id go get a towel and put it over my huge disgusting sweat spot and sometimes we even did a quick sheet swap. she was an angel about it and never complained. the problem back then was i was spooning her too much and all that body heat would cause it

    or so i thought.

    maybe invisible angels were in my bed last night, keeping me warm, telling me its gonna be all right, that no way would baseball be so stupid as to institute the DH in the national league.

  9. Thursday, January 21, 2016

    dear tony, what should we do about global warming? 

    bowieexcellent question

    1. throw any politician out of office if they “disagree” with the scientifically proven fact that it exists.

    2. since it literally is a matter of life and death, create a federal department whose sole purpose is to curb it.

    3. give that agency actual power.

    4. stop giving hundreds of millions of dollars annually in federal subsidies to cattle farmers. “According to the Food and Agriculture Organization of the United Nations, agriculture is responsible for 18% of the total release of greenhouse gases world-wide (this is more than the whole transportation sector).”

    5. buck a gallon global warming tax on gasoline to pay for the agency

    6. reforest the rainforest and if they don’t let us do it, invade them.

    7. pull all of manufacturing out of china until they get their shit together with their pollution. (president trump would make it happen.)

    8. require all new homes and office buildings to have solar panels that make a real difference.

    9. zero income taxes for three years for anyone who has a fully electric car as their primary vehicle

    10. no more night games at wrigley field

     

  10. Wednesday, January 20, 2016

    we just had the hottest year on Earth ever 

    we're all gonna die

    we’re all gonna die

    i love you.

    enjoy Wrigley Field and Old Style beer while you can.

    and whatever you do, keep voting for liars who swear this has nothing to do with mankind

    and theres nothing at all that mankind can do to fix it.

    your bible tells us that mankind can do anything

    anything

    anything

    but it starts with saying oh fuck im sorry i was wrong.