Normally I wouldn’t write about a stock that trades under a buck, but since we’re talking about American Apparel (APP), I guess I can make an exception. Today, news broke that controversial Dov Charney is out as CEO from the company he founded.
Bloomberg News My first response: Charney was still CEO? Based solely on stock price alone–American Apparel’s shares have dropped 28% a year for the past five years–Charney would have been long gone. Then toss in the controversial nature of his tenure at the company–including this infamous Jane Magazine article, which detailed his outside-the, um, box behavior–and it’s amazing the guy’s still around.
As for the stock, it’s gained 6.4% to 68 cents on news of Charney’s departure. I’m sure that’s great comfort to investors who were in for the long haul.
Seriously, how do you destroy that much value and still get to run a company?
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