Following last week’s ousting of American Apparel CEO Dov Charney, many expected the American clothing brand to head vigorously toward a renewal of sorts. The most recent reports on this issue, however, only indicate that they are on the lookout for new funds, yet are making no plans to update their infamous marketing esthetic. Following the stock spike experienced by the company last week, American Apparel Inc. is said to be looking for new ways to make more money, together with their advisers at Peter J. Solomon Co.. At the same time, a recent interview that American Apparel’s Marketing Director Ryan Holiday gave to AdWeek confirmed that their marketing strategy will remain the same.
A recent report from an undisclosed source close to the company explained that the advisors at Peter J. Solomon will inform American Apparel’s board of their funding options over the next few days. The company, whose APP index stood at -16.46 per cent as of the time this article was written, was allegedly considering debt or equity offerings. However, its financial consultancy team is not entirely certain that the company can afford to accrue even more debt, given the terms of the credit contracts they are currently bound by. The same source explained that the decision to fire former CEO Dov Charney might force American Apparel Inc. to refinance the loans it currently has. Charney’s prerogatives were removed last week, following the above mentioned stock spike, and the board plans to fire him after the 30 days that the two parties have at their disposal to solve their conflicts elapse.
Charney is fighting the decision, which came against the backdrops of allegations that he had violated company policies. The charges brought against him include the misuse of funds and the failure to stop the publication of naked photographs with a former American Apparel employee. The same employee has sued Charney for sexual harassment. His legal counsel has rejected the charges and deemed them baseless, in a letter to the counsel of American Apparel’s board of directors.
At the same time, though the brand has been frequently criticized for its portrayal of women and female sexuality, it seems that it’s not about to alter its marketing strategy. In a recent interview for AdWeek, company Director of Marketing Ryan Holiday says the company will not change its marketing and advertising aesthetic. He plans to keep it just as “sexy” and “edgy” as it has been up to now – even though more and more activist groups are denouncing the same esthetic as passé, sexist, and demeaning.