To say that American Apparel's been going through a bit of a rough patch lately might be as much of an understatment as CEO Dov Charney's disclosure that the company's financial duress may affect its future as a viable business. It's a risk, he said, just as, "there's a chance that you get hit by a car. There's a chance that you get a disease."
In an interview with WWD, the toubled clothing company's founder sounded off on American Apparel's current situation, which continues to worsen on a dear-daily basis. Speaking somewhat breezily on the "chances" that his company might not be able to continue in its current state—in all likelihood, we might see up to a third of its NYC stores close—Charney took a more defensive stance regarding attacks on his role as CEO: "How do you know that I'm not running the business as sharp as a tack, given the circumstances that I've been given? Who's to say that I'm doing such a bad job? How does it get better with a new CEO?" he said, dismissing the notion that he might be replaced.
While Charney's questionable management has faced its share of criticism, one thing we support is his determination to keep production from moving offshore. Citing that the company pays its workers $10 to $12 an hour, Charney noted that such a high pay-rate, especially compared to the sub-livable wages paid to workers elsewhere, is a large reason that the company is struggling to break even. His resolution and persistence is laudable—as is his loyalty to the company—but there's only so much praise that comes from refusing to abandon a sinking ship.
