American Apparel Inc. (APP) chief executive officer, Dov Charney, declared that the second quarter revenue report of the company is evidence that he is performing well before he was disinvested in June.
APP apparently had a lower net loss of $16.2 million, which is an improvement over last year’s $37.5 million loss. The company, which is based in Los Angeles, had an operational revenue of $2.58 million during the commencement of its six quarters. Nonetheless, a fall by 6% was exhibited by its retailer’s performance based on same-store invoice values.
The performance of the company somehow serves as Charney’s report card, according to the CEO. The officer stated in an interview with Trish Regan of Bloomberg TV that his term in 12 days of the reported quarter as chief executive officer portrayed how he placed the company in growth while taking resolution in various retail disputes.
Charney claimed that there has been a challenging period in the industry and in order to expand sales, the management should take share from the market.
The shares of APP increased by 9.1% ($1.02), which followed its 5.6% gain the day before in New York.
Since Charney has been cast out from the management in June, he fought his way back to the position. In order to increase his company stake, the CEO compounded with Standard General LP. However, the committee is still tasked to make a decision in rehiring Charney, especially now that he is under assessment by FTI Consulting Inc. in terms of his alleged misconduct.
The directors of APP will evaluate the investigation results and make a decision whether to place Charney in the position or not. The co-chairman of APP, David Danziger, has already agreed to be part of the board along with others.
APP charged Charney with discrimination and sexual harassment consignments. The former CEO has also allegedly misused the fund of the company in order to acquire traveling resource for his family members.
The board said the company found it difficult to accumulate capital expenditure due to negative headlines brought by Charney. The former CEO has been charged with sexual harassment in a number of times, but dismissal of cases has been done.
The legal representative of the former CEO claimed that the charges are not backed by proofs, as attested by the lawyer’s letter dated June 9. An arbitrament demand has been called for by Charney, which encompasses his emotional strain abusive attack and employment agreement rupture.
Charney claimed that the recent conflict will not affect patrons. He even stated that the loyal customers may even find his survival inspiring, which is why he wants to succeed.