All Articles Tagged "bankruptcy"
American Apparel is known as a hit among hipsters and those seeking a clean, modern look. But the American-made retailer may soon have to shut its doors. The retailer is facing bankruptcy with a large bond payment due soon, lurking legal bills from removing past CEO Dov Charney and a low access to cash. Charney was let go over sexual harassment allegations.
In order to make their twice yearly bond payment in April, the Los Angeles-based retailer borrowed money from hedge fund backer Standard General and must come up with another $14.5 million by October 15 for debt payments.
The company’s quarterly earnings report will be released in the next few weeks and investors are preparing for the worst.
“My expectation is that the quarter will be horrible,” Michael Bigger told the New York Post. Bigger owns about 100 shares in the company.
A source close to the brand said that the company is spending cash at a fast pace and may only have $10 million in its reach. However, the retailer reported having $21 million at April’s end, $15 million being a loan from Standard General.
In its annual meeting the company proposed issuing more shares, but the idea did not go over well with shareholders and was dismissed.
“There can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next 12 months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital,” said shareholders this month.
Charney, who is also the founder of the company, holds the most shares. Yet Standard General controls his voting rights. Charney has sued American Apparel and Standard General since his firing.
It is also rumored that Charney is rounding up investors to buy the company if it does indeed go bankrupt.
Are you an American Apparel shopper?
There are no monsters in this world, but I do believe that there are some folks out here who enjoy playing the part of the villain.
Like Suge Knight. Like Omarosa Manigault. Like Floyd Mayweather. And like the most villainous of them all: Curtis “50 Cent” Jackson.
Sure, I once enjoyed leaning back to “Wankster” while poppin’ bottles in the club. And yes, I understand that I just equated a man who has pledged to feed one billion people in the world (and thus far, has fed a few million) to Freddy Krueger. Jackson has proven that he is not just a reformed thug who can rap, but a humanitarian as well a serious actor who once starved himself for a role in which he played a cancer patient. And like most conscious folks, I too hate making statements like this about Black men who have been villainized enough by the mainstream media.
But let’s be serious here: Jackson is not really a nice person. And he has never been a nice person. In fact, he can be downright treacherous. And this is why I have a hard time believing anything that comes out of his mouth, including his recent claims that he is broke.
As many of us have come to understand about Jackson, beneath that warm smile is a man who is always in revenge mode. He is quite the petty individual. Ready to annihilate anyone who may get in his way or he views as a threat. He built an entire career on it. Not only did he come into the hip-hop teaching people “How to Rob an Industry Ni**a,” but his unprovoked and unwarranted attacks on Ja Rule’s sing-song rhyme style is what ultimately propelled him to the top.
And that is just the cheeky stuff. After all, Ja Rule and his timeless love ballads were easy targets. But there have been beefs he was involved in, which at times bordered on sociopathic. Like his entire dispute with Rick Ross. He tracked down Tia Leviston, the mother of one of Ross’ kids, and lured her to New York with a shopping trip at Gucci. He did all this in exchange for an interview in which she bad-mouthed Ross as a deadbeat dad. If that was not evil enough, he would then turn around and betray Leviston by buying her sex tape from a scornful ex and releasing it to the public, all in the hopes of further embarrassing the Miami rapper.
And all of this started over an alleged dirty look at the BET Awards. Ross, of course, isn’t the only one who has been the target of retaliation from Jackson. In 2008, he uploaded a privately recorded conversation between himself and G-Unit member Young Buck, in which the rapper cried about money woes and his dissatisfaction with the group. There is also his public beef with his son Marquise, which has resulted in them being estranged from each other for years now. He has also made a sport of antagonizing a number of rappers and others artists in the entertainment industry, including Nas, Jadakiss, Jay Z, Fat Joe and Sean Combs. In fact, the only person he never snapped back at was comedian Chelsea Handler, who he still professes his love for. And this is after she talked about him like a dog. But I digress.
In some ways, you can kind of understand how he became like this. As this archived Rolling Stone profile of the rapper notes, Jackson was mostly nurtured by the streets. The son of a single mother who was a crack dealer murdered when he turned eight, Jackson would start his own career selling drugs at 12 years old. It was said that Jackson was known to rob other dealers while using violence to maintain his stronghold on the block. His ruthlessness would result in him getting shot nine times. However, he would use those lessons he learned from drug dealing to guide him through the often cutthroat music industry and business world.
And then there is the attention. In hip-hop, which places value on authenticity and how closely tied a rapper’s personal life is to his lyrics, Jackson came off as the real deal and a truth teller. Among some in the Black community specifically, who value wealth building outside of the constraints of racism and White supremacy, he would be a symbol of self-empowerment. And to the mainstream, he became a manifestation of the American dream of pulling one’s self up by the bootstraps. This image he has crafted for himself would ultimately shield much of his anti-social behavior. But it can’t completely hide the fact that Jackson is just a monster – or at the least he plays one very well. And that can’t be ignored.
Jackson has cried broke to a bankruptcy judge and very few believe him. It could be true. Jackson’s promoted lifestyle could be just another way in which he harvests the much-needed attention, power and validation he might not have received as a kid. And he wouldn’t be the first rapper to live beyond their means (ahem, Hammer) and perpetrate about their lifestyle (ahem, Rick Ross).
But there is also a pretty good chance that he is pulling a fast one. As many have noted, his bankruptcy filing comes only days after another judge sided with Leviston in her $5 million suit against the rapper over the release of her sex tape. And as Jay Hathaway writes in a piece for Gawker entitled: “50 Cent: I’m Not Rich, I Just Borrowed Tons of Cool, Expensive Shit:”
The thing is, 50 is probably bullshitting about bullshitting. He has an $80 million endorsement deal with Reebok, plus $78 million from an underwear company, and $23 million from Interscope Records, all admitted to in court. And then there’s the reported $100 million he made from the sale of VitaminWater to Coca-Cola back in 2007? He told the court an NDA prevented him from revealing how much he actually made.
If all that money’s gone, the rapper who was smart (or well-advised) enough to take equity instead of cash on that VitaminWater deal mysteriously got significantly worse at managing his finances over the past half-decade.
The thing is, it’s his word against not only his past but his current public image. And based on what we know about Jackson and his past, his claims of being broke just don’t add up.
Rapper 50 Cent stirred a few laughs on the Conan O’Brien’s show last night, poking a little fun at his Chapter 11 bankruptcy, filed on Monday.
Jackson has not shied away from talking about his bankruptcy and the reasons he decided to file, to protect himself from becoming a “target,” clearly a reference to the verdict in his sex tape case last week.
“You have a bullseye apparently on your back when you become successful,” the business mogul told Conan.
But is seems as though the rapper is having a bit of fun with his financials woes.
“You look like you’re doing okay, I gotta be frank with you,” said Conan laughing and pointing out the rapper’s nicely draped suit.
On Instagram, Fitty, who Forbes says is worth $155 million, posted a picture of himself in front of a small economy vehicle which Conan brought on the screen as the crowd erupted.
Jackson told Conan how he thinks he’s been singled out for big lawsuits. But is this really the way to go if he has already been ordered to pay Lastonia Leviston $5 million? Guess he’s taking precautions for the future.
The “P.I.M.P” rapper is seen causally playing with his phone and in gleeful banter while talking to Conan. The show has, for some reason, pulled the clip of that portion of the interview. But here’s a clip of him talking with Conan about his upcoming movie Southpaw and his campaign for the underline line Frigo. A man with that many gigs certainly doesn’t sound bankrupt.
The rapper-turned-business mogul 50 Cent may have more change to his name than the recent bankruptcy filing would have the public to believe. For a long time now, 50 Cent has made a strong case for his business acumen, so eyebrows have been raised at the bankruptcy filing.
Reports indicate 50 Cent’s filing may have more to do with not wanting to pay what he owes rather than not having it to pay. The rapper’s bankruptcy filing, stating he was $50 million dollars in debt, came shortly after he lost a court case where a woman, Lastonia Leviston, stated he violated her privacy. Last Friday, Curtis Jackson was ordered to pay $5 million for leaking Leviston’s sex tape online.
Leviston’s lawyers believe this bankruptcy fling is a legal strategy designed to give the impression he doesn’t have the money to pay. Jackson filed for Chapter 11 bankruptcy the same day, Monday morning, he was set to appear in a Manhattan court.
On CBS This Morning the woman’s attorney, Hunter Shkolnik, stated that the “In Da Club” rapper “has treated her with complete and utter disregard and disdain and it has continued between him and his lawyers.”
Shkolnik may be right.
“I’m taking the precautions that any other good businessperson would take in this situation.You know when you’re successful and stuff, you become a target. I don’t wanna be a bullseye. I don’t want anybody to pick me as the guy that they just come to with astronomical claims and go through all that,” Jackson told E News!.
“I think there is a perception in the music world that this is more of a legal strategy than a real declaration that he’s out of money,” LA Times writer Mikael Wood told CBS This Morning.
The chapter 11 bankruptcy was filed in Connecticut where 50 Cent owns a multi-million dollar mansion. This past May Forbes listed 50 Cent as the fourth richest rapper with a net worth of $150 million. He has tried to file for bankruptcy before.
The business mogul made between $60 – $100 million in 2007 when Vitamin Water sold its company. He was an early investor. He also launched a liquor label and a men’s underwear line. However he did have to pay $17 million to a headphone company that stated he stole their design and just months ago the rapper’s boxing promotion company filed bankruptcy.
The bankruptcy filing states 50 Cent has $10 million to $50 million in assets and liabilities and owes a few creditors, but his current businesses will not suffer.
“Walt Disney has filed bankruptcy. Donald Trump has filed bankruptcy,” 50 Cent told E! News. “It means you’re reorganizing your finances, but it does stop things from moving forward that you don’t want moving forward.”
So, there could be some truth to the filing. But if 50 Cent is as smart a business man as he’s shown, the filing is about much more than just debt.
After a month-long trial, Curtis “50 Cent” Jackson has been ordered to pay $5 million to plaintiff Lastonia Leviston, who is mother to rapper Rick Ross’ son, the New York Daily News reports.
Leviston’s sex tape with an ex-boyfriend went viral after Jackson promoted it on his website in 2009 without her permission. Friday, a jury delivered the $5 million verdict. Leviston was awarded $2.5 million due to her civil rights being violated by Jackson and another $2.5 million for intentional infliction of emotional distress.
Unfortunately for the “Power” actor, the courts may order him to kick out a few more million after a jury meets this week to determine how much he should be required to pay in punitive damages. Supreme Court Justice Paul Wooten ordered Jackson’s lawyers to submit the rapper’s tax returns and financial net worth statements from the past five years for the jury to review.
Monday, Jackson filed for Chapter 11 bankruptcy protection, just days after the ruling. According to The Wall Street Journal, Jackson listed both his assets and debts in the range of $10 million to $50 million.
According to TMZ, former En Vogue singer Maxine Jones is in financial trouble. Jones has filed for bankruptcy, citing she has over $100K worth of debt.
The singer is no longer with En Vogue after a number of disputes and legal battles. In 2013, a judge ordered Maxine and Dawn Robinson to stop using the En Vogue name for profit. Therefore it has been difficult for Maxine to get work and she blames her debt on this decision.
Jones has listed her $212K home, $22K in CA taxes, $17K in lawyer fees and $539 at Victoria’s Secret as part of her debt. Jones is claiming that the $3,473 she brings in a month is nowhere near enough to cover her bills.
Now, with that being said, Jones is heading back to court to file an appeal against the judge’s previous decision. She would like to use En Vogue’s name again. If approved, this would hopefully help her land gigs and make some money. Maxine has previously filed an appeal against the judge’s decision. What do you guys think, should the judge grant an appeal?
Making the decision to file for bankruptcy can be both a tough and devastating decision. Not only will it remain on your credit report up to a decade (depending on the type of bankruptcy you file), but can also place a scarlet letter on your chest, making loans and purchases more difficult to obtain.
There have been many celebs who filed in attempts to wipe their own slate clean. So what’s a person to do once they have undergone the necessary actions to become bankrupt? While it might seem like your life is over, there are some steps you can take to pick yourself up.
Check out the trailer for “When The Checks Stop Coming In,” the latest from Moguldom Studios here. Purchase your copy today!
“How he gon’ file fo’ bankruptcy?!” we often ask incredulously. “That man is rich!”
But wait! Are they really that rich or is that what they want us to believe? The paparazzi captures celebrities stepping out of fancy cars and palatial homes, but little do we know, they’re just beggars under a cloak of “I want y’all to think I got it like that, but really, I don’t!”
Keeping up with the Joneses is great, I suppose, for maintaining a faux image of wealth and luxury, but it won’t be long until all that stuntin’ around Sunset Boulevard wipes your bank account clean. Now you’re bankrupt! Was the facade really worth it?
I can’t count how many celebrities who have recently filed for bankruptcy: Toni Braxton, Sinbad, Mekhi Phifer, DMX, Michael Vick, T-Boz, etc. Sure all of ’em have had different financial hardships that have lead to their collapse, but there is a common thread. Let’s just say if Suze Orman was here, she’d say, “Stop trying to live above your means!”
With supporting examples, let’s get into why the celebrities we know and love fall onto hard times.
Check out the trailer for “When The Checks Stop Coming In,” the latest from Moguldom Studios here. Purchase your copy today!
Ever wonder how the average American can manage to pay his taxes but celebrities raking in millions of dollars each year can’t? Or how stars who once were the face of multi-million dollar endorsement deals suddenly find themselves filing bankruptcy, facing foreclosure, and having their cars repossessed? So does Moguldom Studios, that’s why they’ve released a new documentary that explores exactly what happens “When The Checks Stop Coming In.”
When The Checks Stop Coming In is a candid investigation into the lives of black celebrities as they fall from fame and fortune to downright broke. It’s the life of a celebrity one minute you are singing to an audience of thousands, playing to an arena of screaming fans, or performing on television for millions of viewers. The accolades are coming fast and furious and the money is pouring in. You think that the dream that you’re living is never going to end, but then you wake up one day and all your money and your livelihood is gone. Your worst nightmare has come true and you’re broke, the groupies are gone and the lifestyle has dried up.
“She Reaped A Lot Of Benefits Of My Wealth”: Antoine Walker Calls Out Evelyn Lozada For Leaving Him After He Went Broke
That’s how long Antoine Walker claims that he was in a relationship with former fiancée, Evelyn Lozada. During that time, Walker was a big NBA player, best known for the years he spent with the Boston Celtics, making millions. But if you’ve seen the ESPN 30 for 30 documentary, Broke, or read the news in general on Walker, you know that he spent himself into a frenzy and filed for Chapter 7 bankruptcy back in 2010. He is currently out here promoting a documentary about the rise and fall of his fame and his fortune over the years called Gone In An Instant. Walker told Russ Parr in a new radio interview that through the film, he hopes to help other NBA players from making the same mistakes he did:
“I wanted to be one of the ones to step in front of my story and tell of how I ended up losing my wealth and make it a positive thing. I think sometimes everybody looks at it as a negative thing, but I want to make it a positive thing and one, let people know how I lost my wealth, but also educate the new guys coming into the league and make sure they don’t make the mistakes that I made.”
At this stage in his life, Walker claims that he is finally without his massive debt, but he’s also without his former love, Lozada. Since leaving him, she has married and divorced Chad Johnson, and has had a child with current fiance, Carl Crawford. She has moved on, but Walker isn’t necessarily out here wishing her the best. In that same interview with the “Russ Parr Morning Show,” Walker spoke openly about feeling some type of way about Lozada leaving him when he was at his lowest point, especially since he claims that she was living quite well and happy with him when he had money.
“My thing with Evelyn is she reaped a lot of benefits of my wealth. And when it got tight, she chose to go a different direction. So that’s the problem that I have with Evelyn. That’s more personal…
I dated Evelyn for 10 years. In 1999, I signed my ninth deal in 1999. So she got to reap the full benefits of the whole process. She played her part. You think someone will have your back and that’s my whole thing. Evelyn went on with her reality show and we all know all her relationships she’s been in since me. It hasn’t been about let me make sure Antoine is okay. So that’s a big difference. That’s why I have a problem with Evelyn. It’s more personal. It’s tough when you take care of some people and you make sure that they’re good, their family, their daughters and then they just go left field.
We got engaged in 2007. We broke up for a minute so that’s what delayed the marriage, and towards the end, she left when things hit the fan.”
Looks like Walker is trying to pull the full on golddigger card, but Lozada claimed during the first season of Basketball Wives Miami that Walker cheated on her multiple times, and that such infidelity on top of other struggles, was a big reason why she had to leave him. And at this point, it seems that Lozada doesn’t appreciate Walker bringing her up in his interviews, because she just posted this on Twitter:
Well, there you have it! But what do you think about what Walker had to say about his past relationship with Lozada? Check out his full interview with “The Russ Parr Morning Show” here. His statements about Lozada start at the 6:00 mark.