After Dov Charney's unsuccessful attempts to put himself back in control of American Apparel, the now-bankrupt company he founded in 1989, he's getting back in the apparel game with a new business venture — and the concept sounds quite familiar.
Charney's new project takes it back to basics with a line of men's and women's wardrobe staples all made in the U.S.A., according to WWD. Charney is working on the venture with Chad Hagan, managing partner of Hagan Capital. In its early stages, the company will focus on developing its wholesale business. While there's no word yet on the brand's name or when it will officially launch, the project's inventory and manufacturing strategies seem awfully similar to American Apparel (save for the wholesaling element). "What's important to us now is we're able to form this new venture and put Dov at the helm and we're going to do basics again," Hagan told WWD. "We don't want to just start with some funny online brand. We're going to do what Dov does best and then establish a robust e-commerce system. But we will not be debuting just as an online retailer."
Charney's new project takes it back to basics with a line of men's and women's wardrobe staples all made in the U.S.A., according to WWD. Charney is working on the venture with Chad Hagan, managing partner of Hagan Capital. In its early stages, the company will focus on developing its wholesale business. While there's no word yet on the brand's name or when it will officially launch, the project's inventory and manufacturing strategies seem awfully similar to American Apparel (save for the wholesaling element). "What's important to us now is we're able to form this new venture and put Dov at the helm and we're going to do basics again," Hagan told WWD. "We don't want to just start with some funny online brand. We're going to do what Dov does best and then establish a robust e-commerce system. But we will not be debuting just as an online retailer."
Hagan Capital was one of the investors that backed a $300 million takeover bid that would've placed Charney at the helm of American Apparel again after he was ousted in December 2014. (This offer was rejected by the company's board earlier last month. A judge approved a Chapter 11 bankruptcy plan for American Apparel soon after, effectively depleting any stake Charney still retained of the company, according to The Wall Street Journal.)
Hagan has long expressed his support of Charney. “Dov’s creativity, entrepreneurialism, and dedication are the cornerstone of American Apparel," Hagan told Bloomberg last month, in regards to the unsuccessful offer to put Charney back in a position of power. Despite all the controversies surrounding Charney and his departure from AA, Hagan doesn't seem to see Charney's tarnished reputation as an obstacle to success (nor the full story behind Charney's power being usurped). "Dov is a colorful CEO, but we've been witnessing a lot of emotions from both sides in this bankruptcy," Hagan told WWD.
How will Charney's potential American Apparel competitor fare ? Stay tuned...