Quote: (07-10-2014 02:32 PM)samsamsam Wrote:
Anyone have a thought on American Apparel? I have been reading a little on the drama and the battle for control, but not sure about its outlook as a stock. It did get some desperately needed funding.
Basically a bet on them going bankrupt or not. Is the brand worth $200 million + their debt? They aren't profitable and their debt levels keep going up year after year.
As a brand and an apparel company, their target demographic has cheaper more diverse options such as Zara and Forever 21. The ironic thing would be someone to take them over and them ship all of the manufacturing jobs to China. I don't see much to like here.
I've made good "bankrupt" bets in the past -- but I don't see any great argument for American Apparel.