whiporwill: The Rise and Fall of American Apparel It wasn’t having oral sex with an employee in front of a female journalist that now threatens to undo Dov Charney, founder of American Apparel. Nor was it simulating oral sex with another female member of staff whom he had ordered to pretend to masturbate in front of him. The 41-year-old’s professional and personal reputation isn’t even on the line because at least three female employees have filed sexual harassment lawsuits against him (all the cases were settled before reaching trial); nor because he walks through his factory in his underpants and conducts meetings wearing just a thong – or a sock. The sock is not, one should add, worn on his foot. Instead, the fashion empire of this maverick Canadian entrepreneur – who apparently relishes his reputation as a pervert and a libertine – has gone from being the coolest company on the block when it arrived in Britain in 2004 to the brink of bankruptcy because its auditor, Deloitte & Touche, resigned last month after discovering “material weaknesses” in the financial controls of the clothing company dating back to last year. For the exhibitionist Charney, whose excesses are the stuff of fashion-industry legend, to be finally humbled by accounts that are more street corner than Wall Street is, some might think, a bit like Al Capone finally being brought to book over tax evasion. But whatever the catalyst, it has led to the unravelling of an empire. It is a rags to riches – and back to rags again – story that has the fashion world in its thrall. In an industry that thrives on sensation, and salacious storytelling that Charney’s behavior was overlooked is not surprising.  What we remember from these stories is that the magic may not be prolonged where profit is missing. Business is business. Good riddance American Apparel. The market could use a new idea anyway. J N O M I C S

whiporwill:

The Rise and Fall of American Apparel

It wasn’t having oral sex with an employee in front of a female journalist that now threatens to undo Dov Charney, founder of American Apparel. Nor was it simulating oral sex with another female member of staff whom he had ordered to pretend to masturbate in front of him. The 41-year-old’s professional and personal reputation isn’t even on the line because at least three female employees have filed sexual harassment lawsuits against him (all the cases were settled before reaching trial); nor because he walks through his factory in his underpants and conducts meetings wearing just a thong – or a sock. The sock is not, one should add, worn on his foot.

Instead, the fashion empire of this maverick Canadian entrepreneur – who apparently relishes his reputation as a pervert and a libertine – has gone from being the coolest company on the block when it arrived in Britain in 2004 to the brink of bankruptcy because its auditor, Deloitte & Touche, resigned last month after discovering “material weaknesses” in the financial controls of the clothing company dating back to last year.

For the exhibitionist Charney, whose excesses are the stuff of fashion-industry legend, to be finally humbled by accounts that are more street corner than Wall Street is, some might think, a bit like Al Capone finally being brought to book over tax evasion. But whatever the catalyst, it has led to the unravelling of an empire. It is a rags to riches – and back to rags again – story that has the fashion world in its thrall.

In an industry that thrives on sensation, and salacious storytelling that Charney’s behavior was overlooked is not surprising.  What we remember from these stories is that the magic may not be prolonged where profit is missing. Business is business. Good riddance American Apparel. The market could use a new idea anyway.

J N O M I C S

Guardian

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  5. tthanh reblogged this from soupsoup and added:
    Most interesting part: Deloitte was behind AA and its auditors took American Apparel down.
  6. cherchezlafemmeaa reblogged this from caraobrien
  7. dominickcosta reblogged this from soupsoup
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  15. cosmicsoup reblogged this from babysansa and added:
    I bought a pair of green leggings for $30 and they ripped for no apparent reason. Their look is geriatric and sterile,...
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  19. hypnotitus reblogged this from almaswithinalmas
  20. heyoh-woah reblogged this from babysansa
  21. stormytherabbit reblogged this from courageouslycreative and added:
    YEEEEEEEEEEAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAH
  22. babysansa reblogged this from teamlaurenwins
  23. brokenfeathersonrippedlace reblogged this from rustle-like-the-wind
  24. authenticsophisticate reblogged this from almaswithinalmas
  25. teamlaurenwins reblogged this from caraobrien and added:
    i want american apparel to go bankrupt so i can get some cheap hoodies. sorry, morals and ethics, i really like their...
  26. whodiedfuuuck reblogged this from caraobrien
  27. susurrus reblogged this from almaswithinalmas
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  32. rustle-like-the-wind reblogged this from k-troll
  33. symn reblogged this from k-troll and added:
    Admittedly, Lion Capital may not be an entirely grey-suited, sober company of British investors. Just last week, Lyndon...
  34. k-troll reblogged this from davidkendall and added:
    Well, on the plus side, I’ll finally be able to afford American Apparel.
  35. davidkendall reblogged this from soupsoup and added:
    If you haven’t read up on this totally unprofessional, unrepentant, narcissistic loser of a person, his story...
  36. alchemyjones reblogged this from rigw and added:
    BUT NOW WHERE WILL THE HIPSTERS BUY MISMATCHED SHORTS? (And where will I get super comfy pajama t-shirts? Srsly peeps. I...
  37. krisnolte reblogged this from soupsoup
  38. whoachaser reblogged this from soupsoup and added:
    That kind of explains the extremely provocative women on the online-shop. Gotta keep an eye on when they file for...
  39. headphonesnotrequired reblogged this from hushpoint
  40. courageouslycreative reblogged this from stormytherabbit and added:
    hey adriana call me when this happens, I’ll be your ride to the mall
  41. zaiga reblogged this from soupsoup
  42. jnomics reblogged this from soupsoup and added:
    In an industry that thrives on sensation, and salacious storytelling that Charney’s behavior was overlooked is not...
  43. queeee reblogged this from soupsoup and added:
    Does this mean that the prices of their clothes will be reduced?
  44. wearnocrowns reblogged this from soupsoup and added:
    People need to start paying more attention to things like this. I’m glad it’s coming too light more, as unfortunate as...
  45. exanimum reblogged this from stormytherabbit and added:
    so xcited for the sales tho
  46. phinasaurus reblogged this from soupsoup and added:
    I think it’ll be more like a rags to riches to rags and back to riches story actually. Nothing like a sensational story...
  47. doodledecay reblogged this from stormytherabbit
  48. quietyourfires reblogged this from soupsoup
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