American Apparel, Inc. engages in the manufacture, distribution, and retail of fashion basic apparel for men, women, and children. It primarily offers t-shirts, denim, sweaters, jackets, and other casual wear. As of December 31, 2007, the company operated 182 retail stores in the United States, Canada, Mexico, the United Kingdom, France, Germany, Italy, the Netherlands, Sweden, Switzerland, Israel, Japan, and South Korea. American Apparel also owns a wholesale business that supplies t-shirts and other casual wear to distributors and screen printers. In addition, it has an online retail e-commerce Web site at store.americanapparel.net. The company was founded in 1998 and is headquartered in Los Angeles, California.
American Apparel was founded in 1989 by Canadian Dov Charney, who had a long history with T-shirts and a fascination with American culture. It was during Charney's freshman year at Tufts University that the company took on the name "American Apparel" and began to experiment with screenprinting, importation and other parts of the apparel business. In 1997 after a variety of iterations, including a period of manufacturing in South Carolina, the company moved to Los Angeles. Charney began to sub-contract sewing with Sam Lim who, at the time, had a shop with 50 workers under the Interstate 10 freeway in east LA. Months later the two became partners. In 2000 American Apparel moved into its current factory in downtown Los Angeles where it continued to grow primarily as a wholesale business, selling blank T-shirts to screenprinters, uniform companies and fashion brands. After its success as a wholesale brand, the company moved into the retail market. The company was ranked 308th in Inks.'s 2005 list of the 500 fastest growing companies in the United States, with a 440% three year growth and revenues in 2005 of over US$211 million.
In late 2006 American Apparel announced a reverse merger, in which Endeavor Acquisition Corp., a special-purpose acquisition company founded in July 2005, bought the company for $360 million. The merger closed in December 2007, at which point American Apparel became a publicly traded company. As a result, Charney became the President and Chief Executive Officer of the publicly traded company known as American Apparel, Inc. He remained the majority shareholder. It is also one of the few clothing companies exporting "Made in the USA" goods and in 2007 sold about 125 million dollars of domestically manufactured clothing outside of America. The company also promotes a number of progressive policies including immigrant rights and labor policies the company dubs "sweatshop free."
CEO DOV CHARNEY
Dov Charney (born January 31, 1969, Montreal, Canada) is the founder and CEO of American Apparel, a clothing manufacturer, wholesaler, and retailer. Charney is known for his success as an entrepreneur, passion for simple clothing, and love for Strictly Rhythm. His "contrarian" leadership style, which he feels promotes creativity, has drawn both extensive praise and criticism. Charney has earned recognition in the media for management decisions to pay a fair wage and refusing to outsource manufacturing. The Los Angeles Times named him as one of the Top 100 powerful people in Southern California and in 2009, he was nominated as a Time 100 finalist by Time magazine.
Charney's father, Morris Charney, is an architect, and his mother, Sylvia Safdie, an artist. Both his parents are of Jewish descent. Charney is a nephew of architect Moshe Safdie.[ He attended Choate Rosemary Hall, a private boarding school in Connecticut and St. George's School of Montreal. Charney grew up with, and was influenced heavily by, the culture of Montreal. He briefly attended Tufts University. As a teenager, he "fell in love" with the United States, and drew a sharp contrast between American and Canadian cultures. As a teenager, Charney was an admirer of American-made products. As a teen, he became disillusioned with Quebec nationalism which was widespread during the 1980s In interviews, he has stated that he considers himself to be a continuation of the trend of Canadian-Jewish entrepreneurs.
At an early age Charney showed signs of an entrepreneurial and independent spirit. According to the New York Times his first venture was selling rainwater he had collected in mayonnaise jars to his neighbors. In 1980, The Canadian Jewish News published a story on Charney with a headline that read "11-Year-Old Schoolboy Edits His Own Newspaper.". He sold these newspapers for 20 cents a copy near his school, only to be caught by a teacher and accused of panhandling and suspended from school. As a child he was featured in the documentary 20th-Century Chocolate Cake, in which he discussed the economics of a summer camp he attended. Charney's ventures were conceived in high school, when he began importing Hanes and Fruit of the Loom t-shirts across the border to Canadian friends. At Choate,he claims to have shipped as many as 10,000 shirts at a time, using a rented U-Haul truck to transport the goods. In 1987, he enrolled at Tufts University. While at Tufts, he continued to operate his business, but dropped out by 1990 to pursue the apparel business full time. He borrowed $10,000 from his father and moved to South Carolina to transition from importing T-shirts to manufacturing them. In 1996, Charney's company restructured when it was unable to cover its debt and filed for Chapter 11. On July 4, 1997, he went to Los Angeles. By 2003, Charney had opened his first retail store and employed over 1,300 people. In 2004, he was named Ernst & Young's Entrepreneur of the Year and Apparel Magazine's Man of the Year
In 1991, Charney began making basic T-shirts under the American Apparel brand. The initial T-shirts were made of simple 18-single jersey and were positioned to compete with the Hanes Beefy-T. The primary market objective was to sell garments to screen printers and wholesale clothiers in the United States and Canada. In 1997, as his design, the 'Classic Girl', built momentum, Charney transitioned manufacturing to Los Angeles. In 2000, American Apparel moved into its current 800,000 sq ft (74,000 m2) factory located in downtown Los Angeles. Charney is officially founder and CEO of American Apparel, but formerly went by the title of "Senior Partner." He infused his personal Progressive politics into the company brand paying factory workers between $13-$18 USD/hr, offering low-cost, full family healthcare for employees and taking a company position on immigration reform. Workers are also allowed free international phone calls durring work hours. He claims to do this not for moral reasons but because it is a better business strategy. He makes all product development and creative hiring decisions himself. Under Charney, American Apparel instituted "team manufacturing" which pools the strongest workers towards priority orders. After its implementation, garment production tripled and required a less then 20% staff increase. He formed the company as a domestic vertically-integrated manufacturer, making him the largest manufacturer still producing garments in America.
Initially American Apparel was a wholesale brand but in 2003 it expanded into the retail market. Its first stores were in Montreal, New York City and Los Angeles. By 2005, the company had over $200M in revenue. Retail operations have grown to include 260+ retail stores. In 2008, he was named Retailer of the Year at the Michael Awards, a fashion industry mainstay. The award's previously gone to Calvin Klein and Oscar de la Renta. In December 2006, Charney entered into an agreement to sell American Apparel for $360 million to the special purpose acquisition company (SPAC) Endeavor Acquisition as a way of taking the company public. As a result of the agreement, Charney was named President and Chief Executive Officer of the publicly traded company known as American Apparel, Inc. He remained the majority shareholder, and all full-time employees of American Apparel were given up to 500 shares of stock depending on length of employment.
Charney is known for his passion for clothing.] His fashion sense is geared towards "young metropolitan adults".] The 'fit' of a shirt is something he often stresses. He was named Man of the Year by both the Fashion Industry Guild and Apparel Magazine for his design work. In 2008, The Guardian named American Apparel "Label of the Year". Charney lives in the Garbutt House, historic mansion atop a hill in Silverlake designed by Frank Garbutt, an early movie pioneer and industrialist. The home is made entirely out of concrete due to Garbutt's deathly fear of fire. He is consumed with work, often sleeping in his office at the company's factory, leaving little separation between his personal and work life. The house often functions as a dormitory for out of town workers doing business at the headquarters. Charney is directly involved in his company's design, branding, and advertising. His print campaigns are award-winning and among the most followed in the garment industry. Charney has promoted a branding strategy that spotlighted his treatment of workers as a selling point for the company's merchandise, promoting American Apparel's goods as "sweatshop free." A banner on top of the downtown factory states "American Apparel is an Industrial Revolution." The company is also known for its simple and provocative ads featuring girls and employees. The subjects are often not but sometimes professional models, and often chosen personally by Charney from local hangouts and stores. He shoots many of the advertisements himself. His advertising has been criticized for featuring young, even teenage, models in sexually provocative poses. However, it has also been lauded for honesty and lack of airbrushing. In 2005, Charney won the "Marketing Excellence Award" in the LA Fashion Awards.
CNBC INTERVIEW WITH Founder & CEO DOV CHARNEY
SHARE STRUCTURE (A/O 08/01/2013)
MARKET VALUE- (Multiply price x OS Shares)
OUTSTANDING SHARES- 110,345,517 (a/o 08/01/2013)
(Available for the Public) FLOAT- 37,270,000 (a/o 08/01/2013)
AUTHORIZED SHARES- 230,000,000 (a/o 08/01/2013)
PAR VALUE- .0001
SHAREHOLDERS OF RECORD- 1,267 (a/o 02/28/2013)
LATEST SHAREHOLDERS MEETING- 6/25/2013 http://www.sec.gov/Archives/edgar/data/1336545/000134100413000695/form8-k.htm
BENEFICIAL OWNERSHIP OF SHARES- 9,000 (A/O 02/28/2013)
Restricted, Insider information found on page 55 of Proxy Statement filed on 03/26/2013
Restricted, insider and Institutional Shares- 71,383,339 66% (a/o 03/25/2013)
Continental Stock Transfer & Trust Company
17 Battery Place
New York, NY 10004
(212) 509-4000, extension 206
NEWS RELEASE's- http://investors.americanapparel.net/releases.cfm