I showed my wife two videos about American Apparel.
The first one is about "Rick Klotz and Dov Charney recently afforded Highsnobiety TV the exclusive opportunity to sit down and discuss the full background story behind the Warriors of Radness and American Apparel partnership."
The second one is about Matilda dancing at American Apparel's brand new distribution center in Los Angeles, California.
After watching both videos my wife said: strange since most companies in distressed situations focus on cash management and not growth initiatives. Either Dov Charney is nuts, or your are 100% correct on your thesis. Or maybe both of you are nuts.
P.S. Please do your research before you trade the stock. This is a highly risky situation and it is not suitable for the majority of investors. The purpose of the post is to write down how I think about this and share it with you. I am currently long APP.