Vertically-integrated clothing retailer American Apparel Inc. is a throwback in every sense of the word. Nevertheless, it didn't stop New York-based Endeavor Acquisition Corp., a special purpose acquisition company, to pay $355 million for it.
The maker and retailer of T-shirts and other clothing items that resemble styles popular in the 1970s and 1980s actually manufactures its entire line at its Los Angeles headquarters, unlike its rivals Abercrombie & Fitch and American Eagle Outfitters. However, like its rivals, it also uses advertising bordering on soft-core pornography, but to stay true to its retro styles, the ads resemble 1980s issues of Penthouse.
Despite the ethos of trying to help American Apparel's seamstresses, who are mostly immigrants, by not only paying twice the minimum wage, but also offering free English classes, healthcare, meals and even shares in the company, American Apparel's founder and CEO Dov Charney has been accused of behavior that is also a throwback to the 1970s: sexual harrasment. Charney denies complaints filed against him that he conducts job interviews in his underwear, among other behaviors too risque to list on this PG-rated blog.
The accusations prompted a New York Times article to ask whether Charney can operate as a CEO of a publicly-traded company. —Matthew Wurtzel
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