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Eating and watching. Very curious to know what the judge will say about $ACCPQ's management turning down a superior deal that keeps the commons alive.
Indeed, thanks for the reply
Action in the next few hours should be very telling of decision
Anyone know what time the hearing is today?
I guess we find out tomorrow if we survived this Q!!!!
Nobody knows whats going on. The ones don't know anything are talking and the ones that do know whats going on are silent.
Anyone have any thoughts on the price action today?
411 million in liabilities?
Has anyone looked at their financials? If I am reading correctly they have 411 million in liabilities?
181.70 Shares Outstanding
102.18M Float
47.94% owned by insiders
12.44m shares are short
Of course they are going to refuse 300 million dollar deal. If that deal went through share holders are toast.
Yes DOV owns 74 Million shares. He purchased 27,351,407 on 27 jun 14 for a total of $19,693,013.
DOV is going to get paid, share holders I don't think so.
Anyone disagree?
The Q's Always get hot when they have potential to move like this one does. I see a major breakout here tomorrow.
Of course they have to accept, you are stating the obvious. They need a 400 million dollar offer before it's accepted.
I think if Hagan keeps raising the price then the company has no choice but to accept.
Ha I agree - but we know that they really want it so my guess is the price will come up.
Yea the Bk plan only gives debt holders a small portion of the debt back. It doesn't make them whole.
I think that the 320mil is actually more than what the BK would be equivalent to if I remember correctly
Decision by judge
Here's the question: Is the offer by Dov and his investor team better than the proposed bankruptcy reorganization plan where ultimately the common shareholders are wiped away? The answer, by all accounts, is an unequivocal yes. I think Hagan mentioned it being a billion dollar company to show that the useless Paula Schneider couldn't run a company to save her life and ultimately ran it into the ground.
I would hope the judge have common sense and side with Dov and his group. We'll see.
I thought that was a poor strategy. To go on TV while your in the middle of negotiations and make comments like that is insane to me
Hagan said they thought this was a billion dollar plus company - I think they raise the bid to $400m or more.
APPCQ .039 setting up, MAs coming together. Potential .10+
The offer has to be in the vicinity of 400 million otherwise this is a dead duck, How many shares outstanding are out there? Betcha they erase 80 million in common shareholders.
I am trying to do my DD on this to determine if this is a lottery play and the common share holder is going to get a stick shoved up their rear end and they are going to break it off.
The reason why the $300 mil offer was rejected is because they owe 397 million in debit.
http://www.bloomberg.com/news/articles/2016-01-15/american-apparel-said-to-reject-latest-charney-led-takeover-bid
This is a scary position to be in because we all know the common investor is going to get fucked if the deal goes through.
Hope is not a strategy and hopping that won't happen is a pure gamble.
Expect success but plan for the worst.
http://biz.yahoo.com/e/160115/appcq8-k.html
"The Company also cautions again that trading in its securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks, and that if the Plan currently proposed by the Company in the Chapter 11 Cases is consummated, its common stock will be extinguished and the holders of the common stock will not receive any consideration[color=red][/color]"
I agree Lone Wolf,With some minor changes to the proposal it may be accepted. We will certianly know more on the 20th. I also see more up side on tuesday.
The judge has a duty to uphold the our rights and privileges as investors. Hopefully we see that happen
Maybe I have a biased perspective and am reading into this what I want to read into it, but reads like current management knows Dov's offer may get accepted:
Seems like we did get something after the close after all. Wonder what to make of it. Hate some of that 'legalese' stuff.
Last chance to board the APPCQ Express!! Choo-choo!!
Maybe we'll see something after the close...buying might be the bondholders who would be making out on both ends if they buy the commons here and get everything back on the other end.
Speculation aside, the news that hit today was basically a confirmation that there is a price the company is willing to accept. That the important thin as far as the commons are concerned...and in that they out that out there, I would think that the judge is now in a position to say 'Enough...they offered a better deal for everyone, stop the non-sense!!'
Wonder if we will see another bid today or Monday?? No reason for this to be green.
Green!! Something nice is coming our way!!!
I think Dov and Team are in the position of being able to present to the judge that they have already sweetened their offer and the most recent decision by the company is the most recent example of decisions continuing that are not in the best interest of all stakeholders.
I wonder what the company's argument will be why the rejection. They didn't seem to put that forth in their decision. Interesting:
http://jezebel.com/american-apparel-workers-beat-up-a-pinata-likeness-of-c-1726424980
This was a few months ago...but by all accounts...she's been a disastrous CEO
I hope so.. Really just a gamble play for me. I don't really expect anything
Paula Schneider and Board of Directors are a joke
So let me get this straight. Dov Charney and his investor team proposed a $300 Million takeover bid of the company who has declared bankruptcy and they rejected the offer? What? By all accounts, this bid by Charney and his group is a win-win for everyone involved, including the common shareholders. In the bankruptcy proposal, the common shareholders are wiped out. No question...by them rejecting this bid...its simply a pride move by the incompetent Schneider and the board. Hopefully the judge in this case will have the common sense to side with Charney and his team.
Yea.. I feel that is the plan from Charneys backers. The deal is already financially better for company and stakeholders. So I think they plan on going to judge either way. I think they offer a last minute deal that they carry to judge if denied.
Should be interesting either way.
Nice. I'm down for a sweetened bid. The important 'take-away', at least from that piece' is that APPCQ is open to taking Dov up on his offer if the price is right.
They better be careful though. If they are unreasonable / greedy, this falls apart and not all stakeholders benefit. They can also o straight to the judge and indicate the company is not carrying out their fiduciary responsibility by rejecting a superior deal. Company better make sure they are consulting with ALL stakeholders and not making determinations simply based on pride or their feelings toward Dov.
Looks like they rejected the deal.
They may be able to get judge and debtors on their side. Their offer makes debtors whole and bankruptcy plan does not.
News article posted on scottrade
Where did you get that from?
They need to finalize this before the 20th. To get off the bankruptcy plan
Starting to trade like something is up as we head into the close. Hmmmmm.
That make more sense. Thank you.
if the mgmt takes Charney's $300 million dollar offer, which repays all debts in full, the shares remain intact.
if mgmt decides to go forward with bankruptcy and the judge allows it, shares are worthless.
Charney's plan is superior, but will mgmt be willing to sell? that's the $100+ million dollar market cap question.
Focus on the $300 million buyout deal, not the deal that may very well not occur...
You clearly missed all the press yesterday or did not read past 1st paragraph
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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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