Dov Charney

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Dov Charney

Charney in Paris, 2007
Born Dov Charney
January 31, 1969
Montreal, Canada
Occupation President and CEO of American Apparel Inc.
Salary US $750,000 [1]

Dov Charney (born January 31, 1969 in Montreal, Canada) is the founder and CEO of American Apparel ("AA"), a clothing manufacturer, wholesaler, and retailer.

Charney is known for his success as an entrepreneur, hustler, and passion for simple clothing.[2][3][4] His "contrarian" leadership style, which he feels promotes creativity, has drawn extensive praise and criticism.[5][2][6] Charney has earned recognition in the media for management decisions to pay a fair wage and refusing to outsource manufacturing, while still running a profitable business.[7][8]

The Los Angeles Times named him one of the Top 100 most powerful people in Southern California.[9]

Contents

[edit] Early life

Charney's father, Morris Charney, is an architect, and his mother, Sylvia Safdie, an artist.[10] Both of his parents are of Jewish descent.[11][12] He is the nephew of noted architect Moshe Safdie.[13] Charney attended Choate Rosemary Hall, a private boarding school in Connecticut.[14] Charney grew up with and was influenced heavily by the culture of Montreal.[15] As a teenager, he "fell in love" with the United States due to the juxtaposition of Canadian culture and American culture.[16] As a teenager, Charney was an admirer of American-made products.[17] He became disillusioned as a teenager with Quebec nationalism which was widespread during the 1980s. [18] In interviews, he has stated that he considers himself to be a continuation of the trend of Canadian-Jewish entrepreneurs. [19]

At an early age Charney showed signs of this entrepreneurial and independent spirit. In 1980 The Canadian Jewish News published a story on Charney with a headline that read "11-Year-Old Schoolboy Edits His Own Newspaper."[20]

[edit] Entrepreneur

Charney got his start in high school, importing Hanes and Fruit of the Loom T-shirts over the border to his friends in Canada[21] He is said to have shipped as many as 10,000 shirts at a time, using a rented U-Haul truck to transport the goods[22]

In 1987, he enrolled at Tufts University. While at Tufts he continued to operate his business but by 1990, dropped out to pursue it full time.[23] He is currently listed as a graduate although in actuality, he'd moved to South Carolina to transition from importing t-shirts to manufacturing them.[24] In 1996, Charney's company could not cover its debt and he was forced to file for Chapter 11 and personal bankruptcy.[25][26] Two years later, he'd migrated to California to try the t-shirt business again.[25] By 2003, Charney had opened his first retail store and employed over 1,300 people.[27]

In 2004, he was named Ernst & Young's Entrepreneur of the Year.[28]

[edit] American Apparel

Main article: American Apparel

[edit] Building the brand

In 1991, Charney began making basic T-shirts under the American Apparel brand. The initial T-shirts were made of basic 18-single jersey and were positioned to compete with the Hanes Beefy-T. The primary market objective was to sell garments to screen printers and wholesale clothiers in the United States and Canada.[29] In 1997, as his design the 'Classic Girl' built momentum, Charney transitioned manufacturing to Los Angeles. In 2000 American Apparel moved into its current 800,000 sq.ft. factory located in downtown Los Angeles. [30]

[edit] Manufacturer

Under Charney, American Apparel instituted "team manufacturing" which pools the strongest workers towards priority orders.[31] After its implementation, garment production tripled and required a less than 20% staff increases.[31] He formed the company as a vertically-integrated manufacturer.[32] This makes hims the biggest manufacturer still making garments in America.[33]

[edit] Retailer

After building a popular wholesale brand, Charney wanted to move American Apparel into the retail market. In 2003 American Apparel opened three retail stores in Montreal, New York and Los Angeles, expanding into an estimated $80 million dollars in sales that year.[34][35] Today the retail operation has grown to include 185 retail stores. In 2008, he was named Retailer of the Year. [36][37]

[edit] CEO

Charney is officially the CEO of American Apparel, but goes by the title of "Senior Partner."[38][11] Charney infused progressive politics into his brand, paying his factory workers up to $18 dollars an hour and offering low cost full family health care for employees.[34][39][40] Immigrant workers are also allowed free phones calls home during work hours.[34] He claims to do this not for moral reasons but because it is a better business strategy.[41][42] Because of Charney, the company has made a conscious choice to bring factory workers inside the brand, both literally and figuratively, because it translates into a better product.[43] He also makes all product development and creative hiring decisions himself.[44]

[edit] Fashion

Charney is known for his passion for clothing.[45] His fashion sense is geared towards "young metropolitan adults."[46] The 'fit' of a shirt is something he often stresses. [47] He was named Man of the Year by both the Fashion Industry Guild and Apparel Magazine for his design work.[48]

[edit] Advertising and branding

Charney is directly involved in his company's design, branding, and advertising. Charney has promoted a branding strategy that spotlighted his treatment of workers as a selling point for the company's merchandise, promoting American Apparel's goods as "sweatshop free." A banner on top of the downtown factory states "American Apparel is an Industrial Revolution."[49] The company is also known for its simple and provocative ads featuring girls and employees. The subjects are rarely models and often chosen personally by Charney from local hangouts and stores.[50] He shoots many of the advertisements himself.[51] His sexually charged advertising has been criticized and also lauded for honesty and lack of airbrushing.[52][53] In 2005, Charney won the "Marketing Excellence Award" in the LA Fashion Awards.[54]

[edit] Company IPO and sale

In December 2006, Charney entered into an agreement to sell American Apparel for $360 million to the publicly listed special purpose acquisition company (SPAC) Endeavor Acquisition.[55] As a result, Charney became the President and Chief Executive Officer of the publicly traded company known as American Apparel, Inc. He remained the majority shareholder, and all employees of American Apparel were given 500 shares of stock in the new company.[8]

[edit] Sexuality and controversy

Charney has been subject to five sexual harassment lawsuits, four of which were dismissed out of court while the fifth is still pending.[56][57] He has also admitted that his office features photographs of nude models.[58] During a series of interviews with reporter Claudine Ko of the now-defunct Jane Magazine[59], Charney masturbated on a number of occasions in front of the writer and engaged in a sexual encounter with an American Apparel employee.[60][61] The reporter later responded to the controversy by saying:

Whenever I see a picture of Dov I can’t help but smile and think fondly of him. That reporting experience was fun, engaging, stimulating and interesting. Dov Charney is a mad man and I like that.[62]

[edit] References

  1. ^ "Endeavor Acquisition Corp. Announces Amendment to American Apparel Transaction", Houston Chronicle, Tue, Dec 11, 2007. 
  2. ^ a b "Dov Charney, the hustler", The Economist, Jan 4, 2007. Retrieved on 2008-03-21. 
  3. ^ "Dov Charney: The hustler and his American dream", The Independent, 23 December 2006. Retrieved on 2008-03-21. 
  4. ^ La Ferla, Ruth. "Building a Brand By Not Being a Brand", New York Times, November 03, 2004. Retrieved on 2008-03-21. "I think I was born a hustler," said Mr. Charney, the fast-talking founder of American Apparel, the rapidly expanding youth-oriented T-shirt chain. "I like the hustle.
  5. ^ Hoffman, Claire. "Clothier has designs on the world", Los Angeles Times, 20 December 2006. Retrieved on 2008-03-21. 
  6. ^ Evan, Carmichael. Be Contrarian - Dov Charney. YoungEntrepreneur.com. Retrieved on 2008-03-26.
  7. ^ Joellen Perry (2004-05-16). Made in America. U.S. News and World Report. Retrieved on 2007-11-27.
  8. ^ a b Endevour Aquisitions Corp. SEC Proxy Statement Schedule 14A, June 5, 2007
  9. ^ "The Power Issue: The West 100", Los Angeles Times, Aug 13 2006. Retrieved on 2008-03-26. 
  10. ^ Jewish Journal, Unfashionable Crisis, 2005-07-29[1]
  11. ^ a b Inc.com's daily report on Dov Charney. September 2005[2]
  12. ^ Launch Box article and quotes from interview of Dov Charney 7/29/05 [3]
  13. ^ Silcoff, Mireille. "A real shirt-disturber: Dov Charney conquered America with his fitted T-shirts and posse of strippers.", Saturday Post. Retrieved on 2008-04-06. 
  14. ^ Haskell, Kari. "An Interview With American Apparel Founder Dov Charney", Debonair Magazine, September 18, 2006. Retrieved on 2008-03-21. 
  15. ^ Silcoff, Mireille. "[via Lexis Nexis A real shirt-disturber: Dov Charney conquered America with his fitted T-shirts and posse of strippers.]", Saturday Post. Retrieved on 2008-04-06. 
  16. ^ Silcoff, Mireille. "[via Lexis Nexis A real shirt-disturber: Dov Charney conquered America with his fitted T-shirts and posse of strippers.]", Saturday Post. Retrieved on 2008-04-06. "...when he was 15, and "had fallen in love with the U.S. in the way only a Canadian kid can -- because Americans had the freedom to choose from hundreds more kinds of sugar breakfast cereals than us.
  17. ^ Dov Charney. (2007). American Apparel - Don Charney Interview [YouTube]. CBS News.@3:30 "Charney has long been an admirer....'there is something about American products...'"
  18. ^ Choate Bulletin: Young Entrepreneurs "increasingly suspect of Quebec nationalism and the sovereignty movement pervading the school system."
  19. ^ Silcoff, Mireille. "[via Lexis Nexis A real shirt-disturber: Dov Charney conquered America with his fitted T-shirts and posse of strippers.]", Saturday Post. Retrieved on 2008-04-06. "...They were glove experts, and I was a T-shirt expert. It made me really proud -- I'm a shoemaker, I'm a bagel-baker, I'm a T-SHIRT MAKER! -- it's just so f---ing old school Jewish. I thought, 'I'm revitalizing a tradition. This is not something to be taken lightly.' "
  20. ^ Montreal Mirror - Mr. No Logo - Alexandra Spunt - August 28, 2003[4]
  21. ^ A. Niedler, Alison. "Angeleno Style", Apparel News, Aug 2000. Retrieved on 2008-03-21. 
  22. ^ Carmichael, Evan. Lesson #4: If You Can Dream It, You Can Do It. EvanCarmichael.com. Retrieved on 2008-03-28.
  23. ^ Dean, Jason. "Dov Charney, Like It or Not", Inc Magazine, Sept 2005. Retrieved on 2008-03-21. 
  24. ^ Bracher, Trisha. "The T-Shirt Empire Breaking the Rules", The Observer, December 21 2003. Retrieved on 2008-03-21. "...he was too busy shifting product to actually complete his degree in American Studies.
  25. ^ a b Haskell, Kari. "An Interview With American Apparel Founder Dov Charney", Debonair Magazine, September 18, 2006. Retrieved on 2008-03-21. 
  26. ^ Stossel, John. "Sexy Sweats Without the Sweatshop", ABC News, Dec. 2, 2005. Retrieved on 2008-03-21.  The business went bankrupt and he filed for Chapter 11 bankruptcy protection
  27. ^ Bracher, Trisha. "The T-Shirt Empire Breaking the Rules", The Observer, December 21 2003. Retrieved on 2008-03-21. "With sales of $80 million this year (which are expected to double next year), it can afford to pay its 1,300-strong workforce...
  28. ^ Dov Charney. (2004). Entrepreneur of the Year [YouTube]. Ernst and Young.
  29. ^ Fonda, Daren. "Bring It On", Time Magazine, October 29, 2001. Retrieved on 2008-03-21. 
  30. ^ Segment of Modern Marvels: Cotton. The History Channel via AmericanApparel.net. Retrieved on 2007-11-25.
  31. ^ a b Falsh, Derek. "Keep Your Fashion in Great Shape", The Pitt News, February 1st 2007. Retrieved on 2008-04-28.  "His team manufacturing..."
  32. ^ Greenberg, David. "Sew what? American Apparel founder Dov Charney wants to de-emphasize the fact he doesn't use sweatshop labor; he's just trying to sell a better T-shirt - People", Los Angeles Business Journal, May 31, 2004. Retrieved on 2008-03-26. 
  33. ^ Dov Charney. (2007). American Apparel - Don Charney Interview [YouTube]. CBS News.@3:50
  34. ^ a b c La Ferla, Ruth. "Building a Brand By Not Being a Brand", New York Times, November 03, 2004. Retrieved on 2008-03-21. 
  35. ^ DNR - All the Way to the Blank - Lee Bailey - March 22, 2004
  36. ^ "Dov Charney of American Apparel Named Retailer of the Year", PR News Wire, May 12, 2008. Retrieved on 2008-05-15. 
  37. ^ Fashionista: Dov Charney, Winner "Dov Charney was just named Retailer of the Year for his work as the Creative Director and entrepreneur behind American Apparel. The award's previously gone to Calvin Klein and Oscar de la Renta.
  38. ^ Charney, Dov. "Letters: American Apparel & United", The Nation. Retrieved on 2008-03-26. 
  39. ^ Palmeri, Christopher. "Living on the Edge at American Apparel", Businessweek, 6/27/05. Retrieved on 2008-03-22. 
  40. ^ Dov Charney. (2007). American Apparel - Don Charney Interview [YouTube]. CBS News.@3:50 "generous fringe benefits"
  41. ^ Walker, Rob. "The Way We Live: 8/1/04: Consumed; Conscience Undercover", New York Times, 8/1/04. Retrieved on 2008-03-21. 
  42. ^ Dobbs, Lou. "Kerry on the Attack; Putin Rival Disappears", CNN, February 9, 2004. Retrieved on 2008-03-26. "A lot of people misunderstand it and think it was a moral decision. I think there is some morality to it. I mean, it is more fun to pay people well than pay people poorly. But it's also an economic one."
  43. ^ Dov Charney. (2004). Entrepreneur of the Year [YouTube]. Ernst and Young. 00:30-1:10
  44. ^ Dov Charney. (2006). Charlie Rose. PBS. 35:00
  45. ^ Gladwell, Malcolm. "The Young Garmentos", The New Yorker, April 24, 2000. Retrieved on 2008-03-21. 
  46. ^ Jamie Wolf (2006-04-23). And You Thought Abercrombie & Fitch Was Pushing It?. New York Times Magazine. Retrieved on 2007-11-25.
  47. ^ 33:57 "Charlie Rose: Dov Charney". Charlie Rose. 7/14/2007.
  48. ^ Olson, Debbi. "American Apparel chain makes Utah debut", The Enterprise, December 17, 2007. Retrieved on 2008-03-28. 
  49. ^ Dov Charney. (2007). American Apparel - Don Charney Interview [YouTube]. CBS News.@8:13
  50. ^ Rapoport, Adam. "T (Shirts) and A", GQ, June 2004. Retrieved on 2008-03-29.  "What makes American Apparel's female models so appealing is that most of them are not models. They are girls whom Charney meets at bars, restaurants, trade shows--pretty much anywhere."
  51. ^ Palmeri, Christopher. "Living on the Edge at American Apparel", Businessweek, 6/27/05. Retrieved on 2008-03-22.  "Charney takes many of the photos himself, often using company employees as models as well as people he finds on the street."
  52. ^ Stossel, John. "Sexy Sweats Without the Sweatshop", ABC News, Dec. 2, 2005. Retrieved on 2008-03-21. 
  53. ^ Morford, Mark. "Porn Stars in My Underwear", San Francisco Chronicle, June 24, 2005. Retrieved on 2008-03-21. 
  54. ^ Los Angeles Fashion Awards 2005
  55. ^ Kang, Stephanie. "American Apparel Seeks Growth Through An Unusual Deal", The Wall Street Journal, December 19, 2006. Retrieved on 2008-03-21. 
  56. ^ Brennan, Margaret. "American Apparel CEO Trial Starts Today", CNBC, Fed 28, 2008. Retrieved on 2008-03-28. 
  57. ^ Brennan, Margaret. "American Apparel's Dov Charney: An Update", CNBC, March 6th, 2008. Retrieved on 2008-03-28. 
  58. ^ Dov Charney. (2007). American Apparel - Don Charney Interview [YouTube]. CBS News.@7:00
  59. ^ Nesvig, Kara. "Unkempt, Urban, Ubiquitous.", Minnesota Daily, October 4th, 2007. Retrieved on 2008-04-28.  "now-defunct"
  60. ^ Claudine Ko, "Meet Your New Boss," Jane Magazine, June/July, 2004
  61. ^ Stossel, John. "Sexy Sweats Without the Sweatshop", ABC News, Dec. 2, 2005. Retrieved on 2008-03-21. 
  62. ^ Dov Charney entry

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