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Point me to what I see in the files indicated the information I post is misleading? Lead me to what you discover...? because if what you said is truth I will buy 8 to ten million shares for myself.
No brainer buy, former CEO has 41% of OS and is doing all he can to save company and will succeed with current offer!
Read all the info, rather than mislead with some of the info.
the stock sure is not behaving like it would survive
ZQKS 'cue' other one me likey ..
thx for the link lets fill that gap !
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with crude turnoil ( in UWTI 2.30 / capitulated O/N imo ) ..can u imagine the number of delisted / Q oil and energy plays we will get
we will make tons on bounces !
Look at what I highlighted in red in my previous post. All I can tell you is that everything is there in writing in the filings, PR's, news, etc. Increasing likelihood commons will survive.
LA Times Highlight!! Now every day a pinkie makes it in there:
http://www.latimes.com/business/la-fi-american-apparel-takeover-offer-20160111-story.html
That's under the Company's restructuring plan - former CEO just put forward his own plan for a buyout which will likely include survival of equity - he owns 41% of the company.
In your opinion, how do you seeing this recent attempt by Dov playing out?
Common shareholders have a fighting chance here?
I Don't see another way out. The old shareholder's become obsolete, wipe out. According to the statement, 8-k filed below.
Effective October 6, 2015, the Common Stock commenced trading on the OTC Pink Marketplace under the symbol “APPCQ.” As described in this
and there is a gap at .10 ...
so over .20 to .25 soon
so its at 4.1 mill hmmmm so if he goes along with the buy out our shares are worth .2775 so .10 to .15 should be a given from these levels
Exactly. So...Dov feels, at a minimum, APPCQ is worth $300mil. Current market cap is $4.1 mil. So since there appears to be a HUGE gap between those figures, I'm thinking the anti-gravitational forces will propel this closer to where Dov thinks it's valued. That or a 'share buy-back lies ahead' if BK court says, 'Dov, you did good by dem shareholders!!!
Translation is shareholders not wiped out, company resurrected! This is gonna be good. It's similar story to Steve jobs taking back Apple! Gets booted and returns as saviour. Go Charney!
How do you read that to assign value to current equity? Slightly confusing how it is worded.
DOV SPICES-UP THE $APPCQ BK POT
www.bloomberg.com/news/articles/2016-01-11/american-apparel-gets-300-million-bid-from-team-backing-charney?cmpid=yhoo.headline
Interesting pitch from Dov (ET-Al.) - but current Mgmt. is scrambling to sell-off the carcass & bones of $APP(CQ)... Proxy-fight shaping up to be 'epic'. Went into a shop recently and saw my suggestions have been heard by the Board:
"RE-BRAND".
#Gadg
DOV SPICES UP THE POT O' www.bloomberg.com/news/articles/2016-01-11/american-apparel-gets-300-million-bid-from-team-backing-charney?cmpid=yhoo.headline
Interesting pitch from Dov (ET-Al.) - but current Mgmt. is scrambling to sell-off the carcass & bones of $APP(CQ)... Proxy-fight shaping up to be 'epic'. Went into a shop recently and saw my suggestions have been heard by the Board:
"RE-BRAND".
#Gadg
Jan 20 showdown around the corner! More traders will flock here when they get wind of what is going on here. Has no where to go but up from these levels, then fireworks after Jan 20!
LW where did you see the capitalization language? One would think his plan would have equity survive since he owns 41% - I also noted that his plan calls for $90m in post restructuring equity - based on current OS that's .50 cents a share for current commons.
See today's news?
You got that right. Unfortunately for those to come, most wont have a Dov stepping forth from the shadows.
Doc Charney owns 41%, he will ensure shareholders are safe!!
RIP going to be a lot more of these BK's in the coming months
The restructuring would wipe out shareholders. The buyout would avoid BK and preserve some equity. How much is unknown, but business would continue outside of BK.
IMO, this is another 'no brainer'.
During Chapter 11s, shares usually get wiped out as there is no equity left over to pay out those 'last in line'. Dov's deal rids the company of its debt while also capitalizing it via his restructuring plan....thus commons survive.
Can you please explaining in details? The bk will wipe out all the old shares, and what you said new 300 million deal put forward by the former CEO would not wipe it out. How possible can that happen? and how it's work? I never see a case like this before.
The initial reorganization would eliminate common shares all together. The new 300 million deal put forward by the former CEO would not.
I don't understand your point? So the old shares going to get wipeout?
INVESTOR GROUP ANNOUNCES $300 MILLION OFFER
TO ACQUIRE AMERICAN APPAREL
LOS ANGELES, CA and ROSWELL, GA, January 11, 2016 - An investor group comprised of Hagan Capital Group and Silver Creek Capital Partners (collectively, the “Investor Group”) announced today that they have submitted a $300 million offer to acquire American Apparel, Inc. (“American Apparel” or the “Company”).
· Offer valuing American Apparel at $300 million is superior to the debtor’s plan of reorganization and is a win-win solution for the Company and all of its stakeholders
· Debtor’s plan is not feasible and will lead to poor long-term recoveries for the Company’s stakeholders and put thousands of manufacturing jobs in Los Angeles at risk
· The acquisition proposal has the support of the Company’s founder, Dov Charney, whose leadership and vision is central to American Apparel’s long-term viability
The American Apparel investment would be managed by PressPlay Group, the private equity arm of San Francisco and Shanghai based PressPlay Global, which is backed by Hagan and Silver Creek.
The terms of the proposal includes an investment from the Investor Group of $130 million, including $90 million of new equity and $40 million of a new term loan. American Apparel would exit bankruptcy with approximately $160 million of liquidity and new equity, including cash, a new $50 million undrawn revolving credit facility, and $90 million of equity cushion at closing, versus approximately $75 million under the debtor’s plan of reorganization.
The total enterprise value of the proposed transaction is $300 million, an attractive valuation to the debtor and above the valuation range of $180 to $270 million publicly stated by the debtor in its disclosure statement. The Investor Group’s offer is an upward revision to a prior proposal submitted by the Investor Group to the Company in December 2015.
Under the Investor Group’s offer, the Company’s pre-petition senior lenders will receive a recovery of over 100% versus 33% to 77% under the debtor’s plan, assuming the low and high values of the debtor’s valuation range. Additionally, the unsecured creditors will receive a recovery of ten times that under the debtor’s plan, plus the benefits from the enhanced long-term viability of the enterprise.
“American Apparel is a proven viable business model that needs to be scaled from a sales point of view and should not be in bankruptcy. If the Company is not turned around it will be a pointless loss of American manufacturing jobs. We strongly urge the creditors to evaluate and accept our offer,” stated Chad Hagan, Managing Partner of Hagan Capital Group.
Headquartered in Los Angeles, American Apparel is an iconic company in the apparel industry, operating the largest clothing manufacturing facility in the United States. In 2014, the Company generated over $600 million of net sales and reported $40 million of Adjusted EBITDA. Mr. Charney has a consistent track record of driving the Company’s business, growing sales for 25 consecutive years with just one exception.
Hagan states, “Dov’s creativity, entrepreneurialism, and dedication are the cornerstone of American Apparel. Removing him from the Company’s board and leadership was a shortsighted mistake and we are seeing the results of this error unfold in the declining performance of the Company today.”
In the nine months ended September 30, 2015, following Mr. Charney’s departure from the Company but prior to the Company’s bankruptcy filing, net sales and gross profits at American Apparel declined 15.5% and 29.2%, respectively. These trends have not showed signs of reversing with net sales down 19.1% on a year-over-year basis for the third quarter of 2015, the last publicly disclosed financial information for the Company.
“The Company’s existing management team has had a year to prove its business strategies for American Apparel. The historical record on this is clear at this point: the Company is a far less profitable business than it was under Mr. Charney’s tenure as Chairman and CEO, and the Company’s sales and EBITDA only continue to deteriorate further under the new regime. We believe that under the strategy being pursued by current management, the debtor’s plan, if confirmed by the court, will ultimately prove unfeasible. This will result in disastrous outcomes for the Company’s various stakeholders,” commented Hagan.
Charney has developed a business plan that he and the Investor Group believe would rapidly improve the Company’s business performance. He has also held discussions with many highly regarded industry executives with exceptional track records, interested in joining the Company if the Investor Group’s proposal were to be successful and Charney returns.
Mr. Charney stated, “American Apparel is one of the largest private sector employers in the city of Los Angeles, providing thousands of manufacturing jobs. This discussion is not just about the impact on the investor returns, but also about the livelihood of thousands of workers. I am confident that given the opportunity I will successfully turn around the Company’s fortunes, return it to profitability and to a market leading position again.”
Cardinal Advisors, LLC is serving as financial advisor to Mr. Charney and Proskauer Rose LLP is serving as legal counsel to Hagan Capital Group and Silver Creek Capital Partners.
will a judge allow a bankruptcy if there is a willing buyer?
Mixing 2 stories. The restructure wipes out commons. The buyout will not, including the largest single shareholder, Dove...wait for counter restructure, followed by counter buyout, getting interesting.
Gravity must be working in reverse today. LoL. Sorry you missed out on a great return as you waited for your R/S and .001's. Lolzzzz
hey real please first go learn how to read. it says under the bankruptcy plan shareholders will be wiped out. but if Dov's buyout plan is accepted there is chance for shareholders. stop spreading fear you shorty!
LoL. I see you haven't been following this one. The longs and the board can fill you in.
WOW unreal Move while shareholders will be wiped out...
boom from 02s !!
$APPCQ! Boom Boom!!
Hi PinkBu I saw that also hoping for something good on the 20th will see the outcome....
Hi 98040! There's an interesting sentence in today's PR, I've read it over and over trying to interpret... It sounds like Mr. Charney is trying hard to get recovery for shareholders, especially since he's the largest... give it a shot and let me know what you think:
-----------------------------------------------------------
DJ Ex-CEO Charney Makes Bid For American Apparel -- Update
Jan 07, 2016 20:15:00 (ET)
By Lillian Rizzo
Former American Apparel Inc. Chief Executive Dov Charney has found an investor to back a rival bid for the bankrupt retailer valued at more than $200 million, according to people familiar with the situation.
Mr. Charney's investor's identity hasn't been disclosed, but people familiar with the situation say it is a privately held company.
American Apparel filed for bankruptcy in October and is looking to swap about $200 million worth of debt for equity as part of its restructuring. Its plan would wipe out shareholders, including its largest, Mr. Charney.
Mr. Charney says his proposal would leave the company, which he founded in 1989, in better shape following its restructuring than the deal now on the table.
American Apparel would have total liquidity of some $170 million upon exiting bankruptcy under his proposal compared with $80 million under the company's current plan, according to a Thursday filing by Mr. Charney in American Apparel's bankruptcy case.
"The alternate proposal also offers an attractive valuation to the debtors within the stated valuation range of $180 [million] to $270 million," he said.
An American Apparel spokeswoman said it would consider all proposals but is focused on seeking approval of its chapter 11 plan.
"American Apparel evaluates all bids consistently, and in the ordinary course. The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month," a company spokeswoman said Thursday.
A successful bid for American Apparel would have to exceed the $350 million to cover the money owed to the bondholders in the bankruptcy process, as well as pay off the $90 million in postbankruptcy financing and provide the $40 million of exit financing that is part of the company's chapter 11 plan.
The troubled retailer is slated to present its existing reorganization plan for bankruptcy-court approval on Jan. 20 and hopes to emerge from chapter 11 shortly thereafter..
Mr. Charney called the process for finding a buyer for American Apparel "flawed" in court papers, and alleged that prospective buyers were given insufficient timing to place a bid. He also says the current reorganization plan, which would leave him and other shareholders empty-handed isn't feasible.
"On its current path, American Apparel is profoundly in need of reorientation of its historic creativity, innovation and art," Mr. Charney said in his objection to the company's chapter 11 exit plan.
In early December, Mr. Charney announced he hired Cardinal Advisors to assist in him lining up investors that would keep him involved with the troubled retailer.
It is still unclear what role Mr. Charney would play at the company, the people added.
Mr. Charney was ousted from his position as chief executive in late 2104 amid allegations of sexual harassment and other misconduct, which he denies.
While American Apparel's financial position deteriorated under Mr. Charney's leadership, it worsened once he was ousted in December 2014. For the nine months ending Sept. 30, American Apparel lost $65 million on $385 million in sales.
Suzanne Kapner contributed to this article.
Write to Lillian Rizzo at Lillian.Rizzo@wsj.com
(END) Dow Jones Newswires
January 07, 2016 20:15 ET (01:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc
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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
http://video.cnbc.com/gallery/?video=3000083430&play=1
SHARE STRUCTURE (A/O 08/01/2013)
http://www.otcmarkets.com/stock/APP/company-info
COMMON STOCK
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
http://investors.americanapparel.net/secfiling.cfm?filingID=1047469-13-3377&CIK=1336545
Restricted, insider and Institutional Shares- 71,383,339 66% (a/o 03/25/2013)
TRANSFER AGENT
Continental Stock Transfer & Trust Company
http://continentalstock.com/
17 Battery Place
New York, NY 10004
(212) 509-4000, extension 206
cstmail@continentalstock.com
Marline Cunningham
1(212) 845-3206
mcunningham@continentalstock.com
NEWS RELEASE's- http://investors.americanapparel.net/releases.cfm
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