Who is to blame for the costly failure of Portolio magazine? Was it the bad economy, out-of-control spending or Silver Lake resident and American Apparel CEO Dov Charney? Several stories about the failure of the high-profile magazine mention Portfolio’s decision to put Charney on the cover of its December issue as among its questionable decision making.
“But more daring editorial choices, such as December’s cover subject Dov Charney, the controversial CEO of American Apparel, came across as ill-timed and wrong-footed.”-
Time
“Once the magazine was launched, its personality lurched in different directions. At first, only conceptual covers could be used. Then that was scrapped and the majority of the magazine’s cover stars were CEO’s in power poses: Tim Geithner, Sumner Redstone … Dov Charney?” –
New York Observer
“The Dov Charney cover is just one example of questionable leadership atop the masthead.” -
Politico
Sounds like Charney is an easy target. But if you really want to blame Charney something, how about American Apparel’s ads for
maternity clothes.
Image from Portfolio.com
Christmas came early for American Apparel founder and Silver Lake resident Dov Charney. On Friday, the shares of American Apparel rose after the company said it’s lenders had extended its credit line, according to the LA Business Journal. How much did the stock rise? Seven cents a share. That does not sound like a lot but Charney, who is the firm’s single largest stockholder, owns more than 37 million shares. That adds up to a gain of more than $2.6 million. Charney’s one-day windfall came a few days after the company announced it was laying off hundreds of workers.
Photos: AmericanApparel.net
Framed stories about American Apparel are mounted on the walls of Keith Fink’s office. But Fink is not a fan of the clothing store chain or its founder, Silver Lake resident Dov Charney. Fink is the West Los Angeles attorney representing former Charney employees in some high profile litigation, and his tactics in this and previous cases are drawing attention and criticism, reports the LA Business Journal.
“Fink has been derided by critics as a Hollywood version of an ambulance chaser who targets celebrities. A Fast Company writer noted last week on the business publication’s blog that he’s “a lawyer who confirms all bad lawyer stereotypes.”
Tuesday, December 2, 2008
It seems the garment maker and retailer is spending as much time promoting its tight fitting clothing as defending its founder, Silver Lake resident Dov Charney from lawsuits. Charney and American Apparel got hit with another lawsuit Tuesday by a former employee, Nikky Yang, who alleges that she was fired after failing to testify on Charney’s behalf in a sexual harassment suit brought by another employee, according to the New York Post. Yang also claimed that Charney failed to give her a stake in the company he had promised in return for years of hard work.
Charney and American Apparel also went to court on Tuesday, filing suit against attorney Keith A Fink, who represents Yang and other former company employees, for an alleged “extortion attempt.”
Photo: Canadians in USA
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