American Apparel kicks week with yet another turmoil

Tuesday, 22 July 2014

American Apparel was big news Tuesday, not only because the then ousted and now reinstated founder and CEO Dov Charney was back to school, but also because Bigger Capital Fund, LP, Bachelier, LLC and the Bigger Family, significant shareholders of American Apparel Inc (NYSEMKT:APP), revealed that they have delivered a letter to American Apparel’s Board of Directors.

The letter has arisen not little concern in the company as it stated that all current directors should be held accountable for the reckless decisions of the board. It demands the resignations of both remaining incumbents, David Danziger and Allan Mayer.

Despite the bad PR, American Apparel Inc (NYSEMKT:APP) traded in the green, gaining in the region of 1.75 percent, although on below -normal volume of 2.53 million shares. The company has a market capitalisation of 201.26 million dollars and the stock´s 52-week range has been 0.46 to 2.09 dollars.

Meanwhile, fashion peer Abercrombie & Fitch shares traded down by 1.02 percent to 38.85 dollars, its lowest level since early June. It´s worth remembering that the stock was testing resistance at 44 dollars early this month.

On a separate note, Gap Inc announced Tuesday that it will introduce the Gap brand to Slovenia and Austria through agreements with new and existing franchise partners: Magistrat International in Slovenia and Gottex, which currently manages the Gap franchise business in Israel and Hungary, in Austria.

"We are thrilled to be opening in Slovenia and Austria and can't wait to meet customers when we open our doors for the first time in each capital city. One of the best things about opening in a new country is the incredible welcome that Gap receives and the buzz that generates for our teams and our customers alike," said Ismail Seyis, Vice President of Gap Franchise.

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