The other day, a co-worker mentioned that someone had bought American Apparel. I don’t remember who they said it was… someone big, like Hanes, or Walmart, but either way, it prompted me to look into the whole thing.
It looks as if American Apparel was indeed acquired, not by any other large clothing manufacturer or retailer, but by a seemingly bland capital investment firm. The ultra-hip “socially conscious” clothier is now owned in whole by Endeavor Acquisition, a “a blank check company recently formed for the purpose of effecting a merger, capital stock exchange, asset acquisition or similar business combination with an entity that has an operating business”.
Endeavor bought American Apparel for $382 million, which is more than enough for the sicko in charge to buy porn and booze for the rest of his days. What happens now is anyone’s guess. Endeavor will more than likely continue to operate the company as it is, boosting it’s value up a good 50 to 60 million before selling it to someone else.
How does that sit with your eco-friendly, sweatshop-free, good-for-society, little-man-vs-big-business attraction to American Apparel?
3 Comments
American Apparel has been not been sweatshop free for at least two years now.
The demand for there clothes has risen so much that they couldn’t go by that anymore.
Um…where did you get your numbers from? The actual Endeavor press releases are on their website at: http://www.endeavoracq.com/
You may want to re-read them. I see something about “debt financing” of $41 million and a capital infusion of up to $120 million — but even adding both of those numbers together you don’t get your number.
Did I miss something?
My numbers came from a few sites:
Mother Jones: American Apparel Sells Out; Cashes In
New York Times: American Apparel to Be Sold to Investment Firm
Guardian Unlimited UK: Rebellious underwear firm sold for $382m
The New York Times article gives the most complete breakdown of the numbers. Hope that helps!
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