American Apparel reported the biggest drop in sales in four years on Monday, in part due to the millions paid out to Jones Day, FTI Consulting and other advisers during the third quarter following the suspension and subsequent internal investigation of its ousted CEO.
During the three months ending Sept. 30, the beleaguered company’s revenue plunged to $155.9 million, a loss of 5.3 percent from the same quarter a year prior—the steepest decline since the fourth quarter of 2010, according to Bloomberg. Among the costs listed as a drag on its performance was $5.3 million in legal and consulting fees related to the probe of its former CEO and president Dov Charney, who was accused of violating American Apparel’s sexual harassment policy and misusing corporate funds.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
