Document
Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'American Apparel, Inc | ' |
Entity Central Index Key | '0001336545 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 174,780,864 |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $9,389 | $8,676 |
Trade accounts receivable (net of allowances of $2,583; $2,229) | 26,776 | 20,701 |
Prepaid expenses and other current assets | 15,534 | 15,636 |
Inventories, net | 150,960 | 169,378 |
Income taxes receivable and prepaid income taxes | 679 | 306 |
Deferred income taxes, net of valuation allowance | 582 | 599 |
Total current assets | 203,920 | 215,296 |
Property and equipment, net | 55,291 | 69,303 |
Deferred income taxes, net of valuation allowance | 2,362 | 2,426 |
Other assets, net | 45,616 | 46,727 |
TOTAL ASSETS | 307,189 | 333,752 |
Current liabilities | ' | ' |
Cash overdraft | 3,891 | 3,993 |
Revolving credit facilities and current portion of long-term debt | 27,060 | 44,042 |
Accounts payable | 33,868 | 38,290 |
Accrued expenses and other current liabilities | 61,464 | 50,018 |
Fair value of warrant liability | 14,704 | 20,954 |
Income taxes payable | 2,365 | 1,742 |
Deferred income tax liability, current | 1,227 | 1,241 |
Current portion of capital lease obligations | 2,951 | 1,709 |
Total current liabilities | 147,530 | 161,989 |
Long-term debt (net of unamortized discount $6,148; $5,779) | 216,160 | 213,468 |
Capital lease obligations, net of current portion | 2,708 | 5,453 |
Deferred tax liability | 521 | 536 |
Deferred rent, net of current portion | 14,165 | 18,225 |
Other long-term liabilities | 13,696 | 11,485 |
TOTAL LIABILITIES | 394,780 | 411,156 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' DEFICIT | ' | ' |
Preferred stock, $0.0001 par value per share, authorized 1,000 shares; none issued | 0 | 0 |
Common stock, $0.0001 par value per share; authorized 230,000 shares; Issued 175,806; 113,469, Outstanding 174,712; 111,330 | 18 | 11 |
Additional paid-in capital | 217,650 | 185,472 |
Accumulated other comprehensive loss | -5,823 | -4,306 |
Accumulated deficit | -297,279 | -256,424 |
Less: Treasury stock, 304 shares at cost | -2,157 | -2,157 |
TOTAL STOCKHOLDERS' DEFICIT | -87,591 | -77,404 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $307,189 | $333,752 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $2,583 | $2,229 |
Debt Instrument, Unamortized Discount | $6,148 | $5,779 |
Preferred Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 230,000 | 230,000 |
Common Stock, Shares, Issued | 175,806 | 113,469 |
Common Stock, Shares, Outstanding | 174,712 | 111,330 |
Treasury Stock, Shares | 304 | 304 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss Statements (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $155,869 | $164,543 | $455,362 | $464,839 |
Cost of sales | 73,330 | 79,903 | 218,462 | 223,461 |
Gross profit | 82,539 | 84,640 | 236,900 | 241,378 |
Selling and distribution expenses | 52,640 | 63,982 | 159,145 | 177,235 |
General and administrative expenses (including related party charges of $155; $181, $537; $625) | 38,785 | 24,918 | 90,829 | 80,716 |
Retail store impairment | 1,193 | 233 | 1,921 | 311 |
Loss from operations | -10,079 | -4,493 | -14,995 | -16,884 |
Interest expense | 9,858 | 10,121 | 29,916 | 29,555 |
Foreign currency transaction loss (gain) | 616 | -449 | 748 | 422 |
Unrealized (gain) loss on change in fair value of warrants | -1,785 | -12,922 | -6,250 | 5,225 |
(Gain) loss on extinguishment of debt | -171 | 0 | -171 | 32,101 |
Other (income) expense | -57 | 58 | -5 | 42 |
Loss before income taxes | -18,540 | -1,301 | -39,233 | -84,229 |
Income tax provision | 644 | 212 | 1,622 | 1,299 |
Net loss | -19,184 | -1,513 | -40,855 | -85,528 |
Basic and diluted loss per share | ($0.11) | ($0.01) | ($0.27) | ($0.78) |
Weighted average basic and diluted shares outstanding | 173,769 | 110,354 | 153,354 | 110,172 |
Other comprehensive (loss) income item | ' | ' | ' | ' |
Net loss | -19,184 | -1,513 | -40,855 | -85,528 |
Foreign currency translation | -1,919 | 1,445 | -1,517 | -785 |
Other comprehensive (loss) income, net of tax | -1,919 | 1,445 | -1,517 | -785 |
Comprehensive loss | ($21,103) | ($68) | ($42,372) | ($86,313) |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Related party charges | $155 | $181 | $537 | $625 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows Statements (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Cash received from customers | $450,079 | $465,468 |
Cash paid to suppliers, employees and others | -427,640 | -466,499 |
Income taxes paid | -1,335 | -2,082 |
Interest paid | -17,852 | -5,726 |
Other | 55 | 35 |
Net cash provided by (used in) operating activities | 3,307 | -8,804 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -8,675 | -18,907 |
Proceeds from sale of fixed assets | 52 | 30 |
Restricted cash | 219 | 1,594 |
Net cash used in investing activities | -8,404 | -17,283 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | -102 | 2,812 |
Repayments of expired revolving credit facilities, net | 0 | -28,513 |
(Repayments) borrowings under current revolving credit facilities, net | -16,965 | 28,713 |
Repayments of term loans and notes payable | -57 | -25,463 |
Repayments of Lion term loan | 0 | -144,149 |
Issuance of Senior Secured Notes | 0 | 199,820 |
Payments of debt issuance costs | -2,099 | -11,880 |
Net proceeds from issuance of common stock | 28,446 | 0 |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | -414 | -2,133 |
Repayments of capital lease obligations | -1,932 | -773 |
Net cash provided by financing activities | 6,877 | 18,434 |
Effect of foreign exchange rate on cash | -1,067 | -287 |
Net increase (decrease) in cash | 713 | -7,940 |
Cash, beginning of period | 8,676 | 12,853 |
Cash, end of period | $9,389 | $4,913 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Net loss | ($40,855) | ($85,528) |
Depreciation and amortization of property and equipment, and other assets | 19,822 | 19,155 |
Retail store impairment | 1,921 | 311 |
Loss on disposal of property and equipment | 48 | 77 |
Share-based compensation expense | 3,764 | 8,044 |
Unrealized (gain) loss on change in fair value of warrants | -6,250 | 5,225 |
Amortization of debt discount and deferred financing costs | 1,893 | 3,717 |
(Gain) loss on extinguishment of debt | -171 | 32,101 |
Accrued interest paid-in-kind | 3,129 | 6,875 |
Foreign currency transaction loss | 748 | 422 |
Allowance for inventory shrinkage and obsolescence | 1,719 | 964 |
Bad debt expense | 635 | 380 |
Deferred income taxes | -24 | -26 |
Deferred rent | -3,661 | -1,667 |
Changes in cash due to changes in operating assets and liabilities: | ' | ' |
Trade accounts receivables | -5,918 | 249 |
Inventories | 15,161 | 1,741 |
Prepaid expenses and other current assets | 2 | -4,026 |
Other assets | 115 | -4,274 |
Accounts payable | -3,181 | -8,133 |
Accrued expenses and other liabilities | 14,098 | 16,394 |
Income taxes receivable / payable | 312 | -805 |
Net cash provided by (used in) operating activities | 3,307 | -8,804 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | $471 | $5,270 |
Organization_and_Business
Organization and Business | 9 Months Ended |
Sep. 30, 2014 | |
Organization and Business [Abstract] | ' |
Nature of Operations [Text Block] | ' |
Organization and Business | |
American Apparel, Inc. and its subsidiaries (collectively the "Company") is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel products and designs. The Company manufactures and sells clothing and accessories for women, men, children and babies. The Company sells its products through the wholesale distribution channel supplying t-shirts and other casual wear to distributors and screen printers, as well as direct to customers through its retail stores located in the U.S. and internationally. In addition, the Company operates an online retail e-commerce website. At September 30, 2014, the Company operated a total of 245 retail stores in 20 countries including the U.S. and Canada. | |
The Company Highlights | |
Recent Developments - On September 29, 2014, the Board of Directors (the "Board") appointed Scott Brubaker as Interim Chief Executive Officer ("CEO") and Hassan Natha as Chief Financial Officer ("CFO"), and John Luttrell resigned as Interim Chief Executive Officer and Chief Financial Officer. | |
On July 7, 2014, the Company received a notice from Lion Capital LLP ("Lion") asserting an event of default and an acceleration of the maturity of the loans and other outstanding obligations under the loan agreement (the "Lion Loan Agreement") thereunder as a result of the suspension of Dov Charney as CEO of the Company by the Board. On July 14, 2014, Lion issued a notice rescinding the notice of acceleration. On July 16, 2014, Lion assigned its rights and obligations as a lender under the Lion Loan Agreement to an entity affiliated with Standard General Group ("Standard General" and such agreement, subsequent to the assignment, the "Standard General Loan Agreement"). Standard General has waived any default under the Standard General Loan Agreement that may have resulted or that might result from Mr. Charney not being the CEO of the Company. | |
On September 8, 2014, the Company and Standard General entered into an amendment of the Standard General Loan Agreement to lower the applicable interest rate to 17%, extend the maturity to April 15, 2021, and make certain other technical amendments, including to remove a provision that specified that Mr. Charney not being the CEO of the Company would constitute an event of default. See Note 7. | |
In connection with the Nomination, Standstill and Support Agreement, dated July 9, 2014, (the "Support Agreement") among the Company, Standard General and Mr. Charney, five directors including Mr. Charney resigned the Company's Board, effective as of August 2, 2014, and five new directors were appointed to the Board, three of whom were designated by Standard General and two of whom were appointed by the mutual agreement of Standard General and the Company. In addition, a new director was appointed to the Board by Lion on September 15, 2014. | |
In 2012, German customs audited the import records of the Company’s German subsidiary for the years 2009 through 2011 and issued retroactive punitive duty assessments of $5,409 on the Company’s imports, including interest and penalties, at the September 30, 2014 foreign currency exchange rate (the assessment was issued in Euros). The German customs imposed a substantially higher tariff rate than the original rate that the Company had paid on the imports, more than doubling the amount of the tariff that the Company would have to pay. The assessments of additional retaliatory duty originated from a trade dispute between Europe and the U.S. which had nothing to do with the Company. | |
Despite the ongoing appeals of the assessment in the German courts and European Commission, the German authorities demanded, and the Company paid $4,390 in the third quarter of 2014 and the final balance of $85 in the fourth quarter of 2014. The Company recorded the duty portion of $83 in cost of sales and the retaliatory duties, interest and penalties of $5,326 in general and administrative expenses in its consolidated statements of operations. | |
The Company believes that it has valid arguments to challenge the merit of the German customs assessment and intends to vigorously defend its position in the German courts and before the European Commission. At this time, the outcome of the legal proceedings is subject to significant uncertainty and no assurance can be made that this matter will result in a full or partial recovery of this payment. | |
Liquidity - As of September 30, 2014, the Company had $9,389 in cash, $27,047 outstanding on a $50,000 asset-backed revolving credit facility with Capital One Business Credit Corp. ("Capital One" and such facility, the "Capital One Credit Facility") and $20,398 of availability for additional borrowings. On October 15, 2014, the Company paid $13,666 in interest on its senior secured notes. | |
In March 2014, the Company entered into the Fifth Amendment to the Capital One Credit Facility (the "Fifth Amendment") and waived the obligation to maintain the minimum fixed charge coverage and maximum leverage ratios for the three months ended December 31, 2013 and March 31, 2014. Based on the Fifth Amendment, the interest rates on borrowings under the Capital One Credit Facility are equal to LIBOR plus 5.0% or the bank's prime rate plus 4.0% at the Company's option and are subject to specified borrowing requirements and covenants. In addition, the Fifth Amendment reset the minimum fixed charge coverage ratio, maximum leverage ratio, and maximum capital expenditures, and added a minimum adjusted EBITDA covenant. For the three months ended September 30, 2014, the Company was required to maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00 and achieve a minimum adjusted EBITDA of $23,406. The Company was in compliance with such covenant at September 30, 2014. | |
Management's Plan - The Company continues to develop initiatives intended to increase sales, reduce costs, or improve liquidity. Beginning with the fourth quarter of 2013, the Company instituted various programs to reduce costs such as payroll and related costs associated with manufacturing and administrative overhead. The Company also limited capital expenditures starting the first quarter of 2014. In addition, the Company continues to drive productivity improvements from its new distribution center, inventory reductions, other labor cost reductions, and consolidation of administrative and manufacturing functions. Efforts to identify additional ways to reduce costs and improve productivity are ongoing. | |
Although the Company has made significant improvements under these programs, the Company operates in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future cash receipts and expenditures. The Company's cash flows are dependent upon meeting future sales growth projections and reducing certain expenses. Accordingly, there can be no assurance that the Company's planned improvements will be successful. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | |
The condensed consolidated financial statements include the accounts of American Apparel, Inc. and its 100% owned subsidiaries. The condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. | |
The financial data of the Company included herein is unaudited. The condensed consolidated financial statements do not contain certain information that was included in the annual financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2013 as well as other publicly filed documents for more complete descriptions and discussions. In the opinion of management, the condensed consolidated financial statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company's financial position, the results of operations, and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. | |
All intercompany balances and transactions have been eliminated upon consolidation. Certain prior year amounts have been reclassified to conform to the current period presentation. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates include: inventory valuation and obsolescence; valuation and recoverability of long-lived assets, including the values assigned to goodwill and property and equipment; fair value calculations, including derivative liabilities; contingencies, including accruals for the outcome of current litigation and assessments and self-insurance; income taxes, including uncertain income tax positions and recoverability of deferred income taxes and any limitations as to net operating losses ("NOL"); and cash flow projections in assessing future performance related to financial standards requiring a prospective analysis in valuing and classifying assets and liabilities. Actual results could differ from those estimates. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash (the amounts of which may, at times, exceed Federal Deposit Insurance Corporation limits on insurable amounts) and trade accounts receivable (including credit card receivables) relating substantially to the Company's U.S. Wholesale segment. Cash is managed within established guidelines, and the Company mitigates its risk by investing through major financial institutions. The Company had approximately $7,932 and $7,374 held in foreign banks at September 30, 2014 and December 31, 2013, respectively. | |
Concentration of credit risk with respect to trade accounts receivable is limited by performing on-going credit evaluations of its customers and adjusting credit limits based upon payment history and the customer's current credit worthiness. The Company also maintains an insurance policy for certain customers based on a customer's credit rating and established limits. Collections and payments from customers are continuously monitored. One customer in the Company's U.S. Wholesale segment accounted for 17.6% and 14.2% of the Company’s total trade accounts receivable as of September 30, 2014 and December 31, 2013, respectively. The Company maintains an allowance for doubtful accounts which is based upon historical experience and specific customer collection issues that have been identified. While bad debt expenses have historically been within expectations and allowances established, the Company cannot guarantee that it will continue to experience the same credit loss rates that it has in the past. | |
Fair Value Measurements | |
The financial instruments recorded in the consolidated balance sheets include cash, trade accounts receivable (including credit card receivables), accounts payable, revolving credit facilities, senior secured notes, term loans and warrants. Due to their short-term maturity, the carrying values of cash, trade accounts receivables, and accounts payable approximate their fair market values. In addition, the carrying amount of the revolving credit facility from Capital One approximates its fair value because of the variable market interest rate charged to the Company. | |
The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date using the exit price. Accordingly, when market observable data is not readily available, the Company's own assumptions are used to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: | |
Level 1 – Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. | |
Level 2 – Pricing inputs are other than unadjusted quoted prices in active markets, which are based on the following: | |
•Quoted prices for similar assets or liabilities in active markets; | |
•Quoted prices for identical or similar assets or liabilities in non-active markets; or | |
•Either directly or indirectly observable inputs as of the reporting date. | |
Level 3 – Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. The valuation policies and procedures underlying are determined by the Company's accounting and finance team and are approved by the CFO. | |
In certain cases, inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. | |
The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2, or from Level 2 to Level 3. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. | |
As of September 30, 2014, there were no transfers between Levels 1, 2, and 3 of the fair value hierarchy. | |
Summary of Significant Valuation Techniques | |
Level 2 Measurements: | |
Senior secured notes: Estimated based on quoted prices for identical senior secured notes in non-active market. | |
Level 3 Measurements: | |
Term loans: Estimated using a projected discounted cash flow analysis based on unobservable inputs including principal and interest payments and discount rate. A yield rate was estimated using yields rates for publicly traded debt instruments of comparable companies with similar features. See Note 8. | |
Warrants: Estimated using the Binomial Lattice option valuation model. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility. See Notes 8 and 11. | |
Indefinite-lived assets - goodwill: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit, discount rate, working capital requirements, capital expenditures, depreciation and terminal value assumptions. | |
Retail stores: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit and discount rate. The key assumptions used in the estimates of projected cash flows were sales, gross margins, and payroll costs. These forecasts were based on historical trends and take into account recent developments as well as the Company's plans and intentions. | |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of its assets and liabilities, and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined that such amounts will more likely than not go unrealized. Significant weight is given to evidence that can be objectively verified. The determination to record a valuation allowance is based on the recent history of cumulative losses and current operating performance and includes an assessment of the degree to which any losses are driven by items that are unusual in nature or incurred to improve future profitability. In addition, the Company reviews changes in near-term market conditions and any other factors arising during the period which may impact its future operating results. If it becomes more likely than not that a tax asset will be realized, any related valuation allowance of such assets would be reversed. | |
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. Management believes that adequate provisions have been made for all years, but the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. | |
The Company's foreign domiciled subsidiaries are subject to foreign income taxes on earnings in their respective jurisdictions. The Company elected to have its foreign subsidiaries, except for its subsidiaries in Brazil, Canada, China, Ireland, Italy, South Korea, and Spain, consolidated in the Company's U.S. federal income tax return. The Company is generally eligible to receive tax credits on its U.S. federal income tax return for most of the foreign taxes paid by the Company's subsidiaries included in the U.S. federal income tax return. | |
For financial statement purposes, the Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Once this threshold has been met, the Company's measurement of its expected tax benefits is recognized in its financial statements. Gross unrecognized tax benefits are included in current liabilities in the consolidated balance sheets, and interest and penalties on unrecognized tax benefits are recorded in the income tax provision in the consolidated statements of operations. | |
Accounting Standards Updates | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued a new standard on disclosure of uncertainties about an entity's ability to continue as a going concern. The new standard provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. Additionally, an entity must provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In June 2014, the FASB issued a new standard on accounting for share-based payments. The new standard clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The new standard also clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In May 2014, the FASB issued a new standard on recognizing revenue in contracts with customers. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard creates a five-step process to recognize revenue that requires entities to exercise judgment when considering contract terms and relevant facts and circumstances. The new standard also requires expanded disclosures surrounding revenue recognition. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
Other recently issued accounting standards are not expected to have a material effect on the Company's consolidated financial statements. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
Inventories | ||||||||
The components of inventories are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 20,664 | $ | 23,199 | ||||
Work in process | 3,094 | 2,596 | ||||||
Finished goods | 131,676 | 146,361 | ||||||
155,434 | 172,156 | |||||||
Less reserve for inventory shrinkage and obsolescence | (4,474 | ) | (2,778 | ) | ||||
Total, net of reserves | $ | 150,960 | $ | 169,378 | ||||
Inventories consist of material, labor, and overhead, and are stated at the lower of cost or market. Cost is primarily determined on the first-in, first-out (FIFO) method. For the three and nine months ended September 30, 2014 and 2013, no supplier provided more than 10% of the Company's raw material purchases. | ||||||||
The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors and records lower of cost or market reserves for such identified excess and slow-moving inventories. The Company had a lower of cost or market reserves for excess and slow-moving inventories of $2,004 and $1,951 at September 30, 2014 and December 31, 2013, respectively. | ||||||||
The Company establishes reserves for inventory shrinkage for each of its retail locations and warehouse based on the historical results of physical inventory cycle counts. Inventory shrinkage reserves were $2,470 and $827 as of September 30, 2014 and December 31, 2013, respectively. |
Property_and_Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ' |
Property, Plant and Equipment Disclosure [Text Block] | ' |
Property and Equipment | |
Depreciation and amortization expense relating to property and equipment (including capitalized leases) is recorded in cost of sales and general and administrative expenses in the consolidated statements of operations. Depreciation and amortization expenses were $6,404 and $6,738 for the three months ended September 30, 2014 and 2013, respectively, and $19,822 and $19,155 for the nine months ended September 30, 2014 and 2013, respectively. | |
Based on the Company's retail store impairment analysis, it recorded impairment charges of $1,193 and $233 for the three months ended September 30, 2014 and 2013, respectively, and $1,921 and $311 for the nine months ended September 30, 2014 and 2013, respectively. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Liabilities and Other Liabilities [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | |||||||
Accrued Expenses and Other Current Liabilities | ||||||||
The components of accrued expenses and other current liabilities are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Compensation, bonuses and related taxes | $ | 10,452 | $ | 11,773 | ||||
Accrued interest | 13,106 | 6,064 | ||||||
Workers' compensation and other self-insurance reserves (Note 14) | 6,472 | 6,383 | ||||||
Sales, value and property taxes | 3,068 | 3,868 | ||||||
Gift cards and store credits | 6,651 | 7,391 | ||||||
Loss contingencies | 3,572 | 1,177 | ||||||
Deferred revenue | 703 | 1,258 | ||||||
Deferred rent | 3,492 | 3,363 | ||||||
Other | 13,948 | 8,741 | ||||||
Total accrued expenses and other current liabilities | $ | 61,464 | $ | 50,018 | ||||
Revolving_Credit_Facilities_an
Revolving Credit Facilities and Current Portion of Long-Term Debt | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Line of Credit Facility [Abstract] | ' | |||||||||||
Short-term Debt [Text Block] | ' | |||||||||||
Revolving Credit Facilities and Current Portion of Long-Term Debt | ||||||||||||
The following table presents revolving credit facilities and current portion of long-term debt: | ||||||||||||
Lender | Expiration | September 30, 2014 | December 31, 2013 | |||||||||
Revolving credit facility | Capital One | 14-Apr-18 | $ | 27,047 | $ | 43,526 | ||||||
Revolving credit facility | Bank of Montreal | 31-Mar-14 | 0 | 443 | ||||||||
Current portion of long-term debt | 13 | 73 | ||||||||||
Total | $ | 27,060 | $ | 44,042 | ||||||||
The Company incurred interest charges of $9,858 and $10,121 for the three months ended September 30, 2014 and 2013, respectively, and $29,916 and $29,555 for the nine months ended September 30, 2014 and 2013, respectively, for all outstanding borrowings. The interest charges subject to capitalization were not significant for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||
Revolving Credit Facility - Capital One | ||||||||||||
In March 2014, the Company entered into the Fifth Amendment to the Capital One Credit Facility which waived the obligation to maintain the minimum fixed charge coverage and maximum leverage ratios for the three months ended December 31, 2013 and March 31, 2014. Based on the Fifth Amendment, the interest rates on borrowings under the Capital One Credit Facility are equal to LIBOR plus 5.0% or the bank's prime rate plus 4.0% at the Company's option and are subject to specified borrowing requirements and covenants. In addition, the Fifth Amendment reset the minimum fixed charge coverage ratio, maximum leverage ratio, and maximum capital expenditures and added a minimum adjusted EBITDA covenant. For the three months ended September 30, 2014, the Company was required to maintain a minimum fixed charge coverage ratio of not less than 1.00 to 1.00 and achieve a minimum adjusted EBITDA of $23,406. The Company was in compliance with such covenants at September 30, 2014. | ||||||||||||
The Capital One Credit Facility is secured by a lien on substantially all of the assets of the Company's domestic subsidiaries and equity interests in certain of the Company's foreign subsidiaries, subject to some restrictions. It requires that the Company maintain a lockbox arrangement and contains certain subjective acceleration clauses. In addition, Capital One may adjust the advance restriction and criteria for eligible inventory and accounts receivable at its discretion. The Capital One Credit Facility contains cross-default provisions whereby an event of default under the Senior Notes Indenture (the "Indenture") or other indebtedness, in each case of an amount greater than a specified threshold, would cause an event of default under the Capital One Credit Facility. As of September 30, 2014, the Company had $1,280 of outstanding letters of credit secured against the Capital One Credit Facility. | ||||||||||||
The Company had $27,047 and $43,526 outstanding on a $50,000 asset-backed revolving credit facility with Capital One as of September 30, 2014 and December 31, 2013, respectively. The amount available for additional borrowings on September 30, 2014 was $20,398. The Capital One Credit Facility matures on April 14, 2018 and is subject to a January 15, 2018 maturity if excess availability is less than $15,000 at the time of notice to Capital One that an Applicable High Yield Discount Obligation redemption will be required pursuant to Section 3.01(e) of the Indenture governing the Notes (as defined in Note 7). | ||||||||||||
Revolving Credit Facility - Bank of Montreal | ||||||||||||
The Company's 100% owned Canadian subsidiaries had a revolving credit facility with Bank of Montreal. Outstanding amounts under this credit facility were repaid, and the agreement expired on March 31, 2014. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consists of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Senior Secured Notes due 2020 (a) | $ | 206,857 | $ | 203,265 | ||||
Standard General Loan Agreement (b) | 9,034 | 0 | ||||||
Lion Loan Agreement (c) | 0 | 9,865 | ||||||
Other | 282 | 411 | ||||||
Total long-term debt | 216,173 | 213,541 | ||||||
Current portion of debt | (13 | ) | (73 | ) | ||||
Long-term debt, net of current portion | $ | 216,160 | $ | 213,468 | ||||
(a) Includes accrued interest paid in-kind of $6,173 and $3,044 and net of unamortized discount of $5,316 and $5,779 at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(b) Includes accrued interest paid in-kind of $365 and net of unamortized discount of $831 at September 30, 2014. | ||||||||
(c) Includes accrued interest paid in-kind of $365 at December 31, 2013. Assigned to Standard General on July 16, 2014. | ||||||||
Senior Secured Notes due 2020 | ||||||||
The Company has outstanding senior secured notes (the "Notes") issued at 97% of the $206,000 par value on April 4, 2013. The Notes mature on April 15, 2020 and bear interest at 15% per annum, of which 2% is payable in-kind until April 14, 2018 and in cash on subsequent interest dates. Interest on the Notes, of approximately $13,900 per payment period in 2015, is payable semi-annually, in arrears, on April 15 and October 15. On April 14, 2014 and October 15, 2014, the Company paid $13,390 and $13,666 in interest on the Notes, respectively. | ||||||||
On or after April 15, 2017, the Company may, at its option, redeem some or all of the Notes at a premium, decreasing ratably over time to zero as specified in the Indenture, plus accrued and unpaid interest to the redemption date. Prior to April 15, 2017, the Company may, at its option, redeem up to 35% of the aggregate principal amount of the Notes with the net cash proceeds of certain equity offerings at a redemption price of 113% of the aggregate principal amount of the redeemed notes plus accrued and unpaid interest to the redemption date. In addition, at any time prior to April 15, 2017, the Company may, at its option, redeem some or all of the Notes by paying a "make whole" premium, plus accrued and unpaid interest to the redemption date. If the Company experiences certain change of control events, the holders of the Notes will have the right to require the Company to purchase all or a portion of the Notes at a price in cash equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest to, the date of purchase. In addition, the Company is required to use the net proceeds of certain asset sales, if not used for specified purposes, to purchase some of the Notes at 100% of the principal amount, plus accrued and unpaid interest to, but not including, the date of purchase. On each interest payment date after April 4, 2018, the Company will be required to redeem, for cash, a portion of each Note then outstanding equal to the amount necessary to prevent such Note from being treated as an "applicable high yield discount obligation" within the meaning of the Internal Revenue Code. The redemption price will be 100% of the principal amount plus accrued and unpaid interest thereon on the date of redemption. | ||||||||
The Notes are guaranteed, jointly and severally, on a senior secured basis by the Company's existing and future domestic subsidiaries. The Notes and the related guarantees are secured by a first-priority lien on the Company's and its domestic subsidiaries' assets (other than the Credit Facility Priority Collateral, as defined below, subject to some exceptions and permitted liens). The Notes and the related guarantees also are secured by a second-priority lien on all of Company's and its domestic subsidiaries' cash, trade accounts receivable, inventory and certain other assets (collectively, the "Credit Facility Priority Collateral"), subject to certain exceptions and permitted liens. The Notes and the guarantees, respectively, rank equal in right of payment with the Company's and its domestic subsidiaries' senior indebtedness, including indebtedness under the Capital One Credit Facility, before giving effect to collateral arrangements. | ||||||||
The Notes impose certain limitations on the ability of the Company and its domestic subsidiaries to, among other things, and subject to a number of important qualifications and exceptions, incur additional indebtedness or issue disqualified capital stock or preferred stock (with respect to restricted subsidiaries), grant liens, make payments in respect of their capital stock or certain indebtedness, enter into transactions with affiliates, create dividend or other payment restrictions affecting subsidiaries, merge or consolidate with any other person, sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its assets or adopt a plan of liquidation. The Company must annually report to the trustee on compliance with such limitations. The Notes also contain cross-default provisions whereby a payment default or acceleration of any indebtedness in an aggregate amount greater than a specified threshold would cause an event of default with respect to the Notes. | ||||||||
As of September 30, 2014, the Company was in compliance with the required covenants of the Indenture. | ||||||||
Standard General Loan Agreement | ||||||||
On July 7, 2014, Lion issued a notice of acceleration to the Company under the Lion Loan Agreement as a result of the Board's decision to suspend Mr. Charney as CEO of the Company. The notice accelerated and declared the amounts outstanding under the Lion Loan Agreement and any accrued interest immediately due and payable. On July 14, 2014, Lion issued a notice rescinding the notice of acceleration. On July 16, 2014, Lion assigned its rights and obligations as a lender under the Lion Loan Agreement to Standard General. Standard General has waived any default under the Standard General Loan Agreement that may have resulted or which might result from Mr. Charney not being the CEO of the Company. | ||||||||
On September 8, 2014, the Company entered into an amendment of the Standard General Loan Agreement to lower the applicable interest rate to 17%, extend the maturity to April 15, 2021, and make certain other technical amendments, including to remove a provision that specified that Mr. Charney not being the CEO of the Company would constitute an event of default. The principal amount of the term loan is $9,865. Interest under the loan agreement is payable in cash or, to the extent permitted by the Company's other debt agreements, in-kind. | ||||||||
As a result of the September 8, 2014 amendment, the Company evaluated the change in cash flows and determined that there was a greater than 10% change between the present values of the existing loan and the amended loan causing an extinguishment of debt. The Company recorded the amended loan at its fair value of $9,034 and recorded a gain of $171 on extinguishment of debt. Additionally, the $831 difference between the original principal amount of $9,865 and the fair value of the amended loan of $9,034 was recorded as a discount and will be recognized as interest expense using the effective interest method over the remaining term of the amended loan. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The Company's financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized (gain) loss on change in fair value of warrants in the consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note 2. | ||||||||||||||||
The following tables present carrying amounts and fair values of the Company's financial instruments as of September 30, 2014 and December 31, 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The Company did not have any assets or liabilities categorized as Level 1 as of September 30, 2014. | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||
Senior Secured Notes due 2020 | Level 2 Liability | $ | 206,857 | $ | 224,540 | |||||||||||
Standard General Loan Agreement | Level 3 Liability | 9,865 | 9,034 | |||||||||||||
Lion Warrant | Level 3 Liability | (a) | 14,704 | |||||||||||||
$ | 216,722 | $ | 248,278 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||
Senior Secured Notes due 2020 | Level 2 Liability | $ | 203,265 | $ | 191,065 | |||||||||||
Lion Loan Agreement | Level 3 Liability | 9,865 | 9,773 | |||||||||||||
Lion Warrant | Level 3 Liability | (a) | 20,954 | |||||||||||||
$ | 213,130 | $ | 221,792 | |||||||||||||
(a) No cost is associated with these liabilities (see Note 11). | ||||||||||||||||
The following table presents a summary of changes in fair value of the Lion Warrant (Level 3 financial liabilities) which are marked to market on a periodic basis: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 16,489 | $ | 35,388 | $ | 20,954 | $ | 17,241 | ||||||||
Adjustments included in earnings (a) | (1,785 | ) | (12,922 | ) | (6,250 | ) | 5,225 | |||||||||
Balance at September 30, | $ | 14,704 | $ | 22,466 | $ | 14,704 | $ | 22,466 | ||||||||
(a) The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gains or losses are recorded in unrealized (gain) loss on change in fair value of warrants in the consolidated statements of operations. | ||||||||||||||||
At September 30, 2014, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Income Taxes | |
Income taxes for the three and nine months ended September 30, 2014 and 2013 were computed using an effective tax rate estimated to be applicable for the full fiscal year, which is subject to ongoing review and evaluation by management. | |
The Company incurred losses from operations for the three and nine months ended September 30, 2014 and 2013. Based upon these results and the recent history of cumulative losses for the prior three years, as well as trends in the Company's performance projected through 2014, the Company's management believes that it is more likely than not deferred tax assets in certain jurisdictions are not fully realizable. Accordingly, the Company will not record any income tax benefits in the condensed consolidated financial statements until it is determined that the Company will generate sufficient taxable income in the respective jurisdictions to realize the deferred income tax assets. As a result of the analysis, the Company determined that a full valuation allowance against the net deferred tax assets in certain jurisdictions, primarily in the U.S., and partial valuation allowances in certain foreign jurisdictions, is required. | |
The Internal Revenue Code, Section 382, as amended, imposes annual limitation on the utilization of NOL carryforwards, other tax carryforwards, and certain built-in losses upon an ownership change. The Company performed an analysis determining it was more likely than not that an ownership change had not occurred through December 31, 2013, and accordingly, NOL carryforwards through such date are not subject to an annual Section 382 limitation. On March 31, 2014, the Company completed a public offering of 61,645 shares of its common stock. On June 25, 2014 Standard General entered into an agreement with Mr. Charney to purchase shares of the Company's common stock and then loan Mr. Charney the funds necessary to acquire those shares from Standard General. On June 27, 2014, Standard General sold 27,351 shares of the Company's common stock to Mr. Charney. As of September 30, 2014, the Company has not completed an analysis whether an ownership change occurred under Section 382, which, if it did occur, could substantially limit its ability in the future to utilize its NOLs and other tax carryforwards. | |
The Internal Revenue Service completed its audit on the Company's tax year 2011, and there was no assessment. Tax years that remain subject to audits by the Internal Revenue Service are 2012 through 2013. The Company's state and foreign tax returns are open to audit under similar statute of limitations for the calendar years 2008 through 2013. |
Related_Party_Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Related Party Transactions | |
Personal Guarantees by Mr. Charney | |
As of September 30, 2014, Mr. Charney personally guaranteed the Company's obligations under three property leases aggregating $9,447 in obligations and with three vendors aggregating $1,970 in obligations. | |
Lease Agreement Between the Company and a Related Party | |
The Company has an operating lease expiring in November 2016 for its knitting facility with American Central Plaza LLC, which is partially owned by Mr. Charney and Marty Bailey, the Company's Chief Manufacturing Officer ("CMO"). Mr. Charney holds an 18.75% ownership interest in American Central Plaza LLC while the CMO holds a 6.25% interest. The remaining members of American Central Plaza LLC are not affiliated with the Company. Rent expenses (including property taxes and insurance payments) related to this lease were $155 for both the three months ended September 30, 2014 and 2013, and $466 and $465 for the nine months ended September 30, 2014 and 2013, respectively. | |
Payments to Morris Charney | |
Morris Charney ("Mr. M. Charney") is Mr. Charney's father and served as a director of American Apparel Canada Wholesale Inc. and a director of American Apparel Canada Retail Inc. until June 28, 2014. Day to day operations of these two Canadian subsidiaries are handled by their management and employees, none of whom performs any policy making functions for the Company. The Company's management sets the policies for American Apparel, Inc. and its subsidiaries as a whole. Mr. M. Charney did not perform any policy making functions for the Company or any of its subsidiaries. Instead, Mr. M. Charney only provided architectural consulting services primarily for stores located in Canada. Mr. M. Charney was paid architectural consulting and director fees amounting to $0 and $26 for the three months ended September 30, 2014 and 2013, respectively, and $71 and $160 for the nine months ended September 30, 2014 and 2013, respectively. | |
Agreements between Mr. Charney and Standard General | |
As of September 30, 2014, Mr. Charney owned approximately 42.7% of the Company's outstanding common stock. Mr. Charney and Standard General collectively controlled the right to vote such common stock. | |
On June 25, 2014, Mr. Charney entered into a letter agreement with Standard General in which, if Standard General was able to acquire at least 10% of the Company's outstanding shares, Standard General would loan Mr. Charney the funds needed for him to purchase those acquired shares from Standard General (the "SG-Charney Loan"). Between June 26, 2014 and June 27, 2014, Standard General acquired 27,351 of the Company's outstanding shares, and Mr. Charney purchased those shares at a price of $0.715 per share using the proceeds from the SG-Charney Loan. According to Mr. Charney's Schedule 13D/A, dated June 25, 2014, the loan bears interest at 10% per annum, payable in-kind and matures on July 15, 2019, with no prepayment penalty. The loan is collateralized by the newly acquired shares as well as by Mr. Charney's original shares of the Company's outstanding common stock. | |
On July 9, 2014, Mr. Charney and Standard General entered into a cooperation agreement, which provides, among other things, that neither Mr. Charney nor Standard General will vote the common stock owned by Mr. Charney except in a manner approved by the parties in writing, except that Mr. Charney may vote certain of his shares in favor of his own election to the Board and may vote all of such shares pursuant to the Investment Voting Agreement dated March 13, 2009 between Mr. Charney and Lion. In addition, Mr. Charney agreed to enter into warrant agreements with Standard General that would give Standard General the right exercisable, on or prior to July 15, 2017, to purchase from Mr. Charney 32,072 shares (consisting of the 27,351 shares purchased by using the proceeds from the SG-Charney Loan and 10% of Mr. Charney’s 47,209 original shares). | |
Loan and Warrants held by Lion | |
See Note 7 for a description of the loan made by Lion to the Company (and assigned to Standard General on July 16, 2014) and Note 11 for a description of warrants issued by the Company to Lion. |
Stockholders_Deficit
Stockholders' Deficit | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||
Stockholders' Deficit | |||||||||||
Public Offering | |||||||||||
On March 31, 2014, the Company completed a public offering of approximately 61,645 shares of its common stock at $0.50 per share for net proceeds of $28,446. | |||||||||||
Common Stock Warrants | |||||||||||
As a result of the public offering in March 2014, Lion received the right to purchase an additional 2,905 shares of the Company's common stock, and the exercise price of all of Lion held warrants (the "Lion Warrants") was adjusted from $0.75 per share to $0.66 per share. Such adjustments were required by the terms of the existing Lion Warrants. As of September 30, 2014, Lion held warrants to purchase 24,511 shares of the Company's common stock, with an exercise price of $0.66 per share. These warrants will expire on February 18, 2022. | |||||||||||
The Lion Warrants, as amended, contain certain anti-dilution protections in favor of Lion providing for proportional adjustment of the warrant price and, under certain circumstances, the number of shares of the Company's common stock issuable upon exercise of the Lion Warrants, in connection with, among other things, stock dividends, subdivisions and combinations and the issuance of additional equity securities at less than fair market value, as well as providing for the issuance of additional warrants to Lion in the event of certain equity sales or debt for equity exchanges. | |||||||||||
As of September 30, 2014, the fair value of the 24,511 Lion Warrants, estimated using the Binomial Lattice option valuation model, was $14,704 and was recorded as a current liability in the consolidated balance sheets. The calculation assumed a stock price of $0.82, exercise price of $0.66, volatility of 71.69%, annual risk free interest rate of 2.27%, a contractual remaining term of 7.5 years and no dividends. | |||||||||||
The following table presents a summary of common stock warrants activity as of September 30, 2014: | |||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Contractual Life | |||||||||
(in thousands) | (in years) | ||||||||||
Outstanding - January 1, 2014 | 21,606 | $ | 0.75 | 8.2 | |||||||
Issued (a) | 24,511 | $ | 0.66 | 8 | |||||||
Forfeited (a) | (21,606 | ) | $ | 0.75 | 0 | ||||||
Expired | 0 | $ | 0 | 0 | |||||||
Outstanding - September 30, 2014 | 24,511 | $ | 0.66 | 7.5 | |||||||
Fair value - September 30, 2014 | $ | 14,704 | |||||||||
(a) Issued and forfeited warrants represents repriced shares. | |||||||||||
Earnings Per Share | |||||||||||
The Company presents earnings per share ("EPS") utilizing a dual presentation of basic and diluted EPS. Basic EPS excludes dilution and reflects net loss divided by the weighted-average shares of common stock outstanding for the period presented. Diluted EPS includes the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||
The Company had common stock under various options, warrants and other agreements at September 30, 2014 and December 31, 2013. The weighted-average effects of approximately 40,000 and 54,000 shares at September 30, 2014 and 2013, respectively, were excluded from the calculation of net loss per share for both three and nine months ended September 30, 2014 and 2013 because their effect would have been anti-dilutive. | |||||||||||
A summary of the potential stock issuances under various options, warrants and other agreements that could have a dilutive effect on the shares outstanding for the nine months ended September 30 are as follows: | |||||||||||
2014 | 2013 | ||||||||||
SOF warrants | 0 | 1,000 | |||||||||
Lion warrants | 24,511 | 21,606 | |||||||||
Shares issuable to Mr. Charney based on market conditions (a) | 13,611 | 20,416 | |||||||||
Contingent shares issuable to Mr. Charney based on market conditions (b) | 0 | 2,112 | |||||||||
Contingent shares issuable to Mr. Charney based on performance conditions (c) | 0 | 5,000 | |||||||||
Employee options and restricted shares | 1,505 | 3,449 | |||||||||
39,627 | 53,583 | ||||||||||
(a) Charney Anti-Dilution Rights pursuant to the April 26, 2011 Investor Purchase Agreement, of which 6,805 expired unexercised on April 15, 2014. | |||||||||||
(b) Pursuant to the March 24, 2011 conversion of debt to equity, which expired unexercised on March 24, 2014. | |||||||||||
(c) Pursuant to Mr. Charney's employment agreement commenced April 1, 2012, of which 5,000 expired unexercised on December 31, 2013. (Note 12). |
SharedBased_Compensation
Shared-Based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
Share-Based Compensation | |||||||||||||
The American Apparel, Inc. 2011 Omnibus Stock Incentive Plan (the "2011 Plan") authorizes the granting of a variety of incentive awards, the exercise or vesting of which would allow up to an aggregate of 17,500 shares of the Company's common stock to be acquired by the holders of such awards and authorizes up to 3,000 shares that may be awarded to any one participant during any calendar year. The purpose of the 2011 Plan is to provide an incentive to selected employees, directors, independent contractors, and consultants of the Company or its affiliates, and provides that the Company may grant options, stock appreciation rights, restricted stock, and other stock-based and cash-based awards. As of September 30, 2014, there were approximately 12,724 shares available for future grants under the 2011 Plan. | |||||||||||||
Restricted Share Awards - The following table presents a summary of the restricted share awards activity as of September 30, 2014: | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value Per Share | Weighted-Average Remaining Vesting Period (in years) | |||||||||||
(in thousands) | |||||||||||||
Non-vested - January 1, 2014 | 1,850 | $ | 1.46 | 0.9 | |||||||||
Granted | 988 | $ | 0.72 | ||||||||||
Vested | (1,737 | ) | $ | 1 | |||||||||
Forfeited | (296 | ) | $ | 1.64 | |||||||||
Non-vested - September 30, 2014 | 805 | $ | 1.46 | 0.2 | |||||||||
Vesting of the restricted share awards to employees are generally either immediately upon grant or over a period of three to five years of continued service by the employee in equal annual installments. Vesting is immediate in the case of members of the Board of Directors. Share-based compensation is recognized over the vesting period based on the grant-date fair value. | |||||||||||||
Stock Option Awards - The following table presents a summary of the stock option activity as of September 30, 2014: | |||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Contractual Remaining Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
(in thousands) | (in years) | ||||||||||||
Outstanding - January 1, 2014 | 700 | $ | 0.82 | 7.8 | |||||||||
Granted | 0 | ||||||||||||
Forfeited | 0 | ||||||||||||
Expired | 0 | ||||||||||||
Outstanding - September 30, 2014 | 700 | $ | 0.82 | 7 | $ | 3.5 | |||||||
Vested - September 30, 2014 | 700 | $ | 0.82 | 7 | $ | 3.5 | |||||||
Non-vested - September 30, 2014 | 0 | $ | 0 | ||||||||||
Share-Based Compensation Expense - The Company recorded share-based compensation expenses of $1,106 and $1,228 for the three months ended September 30, 2014 and 2013, respectively, and $3,764 and $8,044 for the nine months ended September 30, 2014 and 2013, respectively, related to its share-based compensation awards that are expected to vest. No amounts have been capitalized. As of September 30, 2014, unrecorded compensation cost related to non-vested awards was $1,162, which is expected to be recognized through 2017. | |||||||||||||
Mr. Charney Anti-Dilution Rights - The Company recorded share-based compensation expense (included in the above) associated with Mr. Charney's certain anti-dilution rights of $268 and $1,628 for the three months ended September 30, 2014 and 2013, respectively, and $1,644 and $5,770 for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, unrecorded compensation cost related to non-vested awards was $340, which is expected to be recognized through 2015. On April 15, 2014, the last day of the first measurement period, the Company determined that the vesting requirements for such period were not met, and as a result, 6,805 of the 20,416 anti-dilution rights expired unexercised. | |||||||||||||
Mr. Charney Performance-Based Award - Effective April 1, 2012, the Company provided Mr. Charney the rights to 7,500 shares of the Company's stock which were issuable in three equal installments, one per each measurement period, only upon the achievement of certain EBITDA targets for each of fiscal 2012, 2013 and 2014. The fair value of the award was based on the grant-date share price of $0.75 per share. For 2012, the Company achieved the target EBITDA and Mr. Charney received 2,500 shares, but did not achieve the target EBITDA for 2013. For 2014, the achievement of the performance condition was no longer considered probable, and previously recognized compensation costs were reversed during 2013. As of September 30, 2014, there was no unrecorded compensation cost related to this EBITDA award. The Company recorded share-based compensation expense of $0 and benefit of $1,015 for the three months ended September 30, 2014 and 2013, respectively, and $0 and $235 for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||
Non-Employee Directors - On January 2, April 1, and July 1, 2014, the Company issued a quarterly stock grant to each director for services performed of approximately 8, 20, and 11 shares based on grant date fair values of $1.21, $0.50, and $0.87 per share, respectively. | |||||||||||||
In connection with the Support Agreement, four non-employee directors resigned from the Company's Board, and six new directors were appointed to the Board. On September 15, 2014, each of the four resigned non-employee directors received a pro-rated quarterly stock grant of approximately 4 shares based on grant date fair value of $0.88 per share. On October 1, 2014, the Company issued quarterly stock grants ranging from approximately 4 to 16 shares based on the grant date fair value of $0.81 per share. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Commitments and Contingencies | |
Operating Leases | |
The Company conducts retail operations under operating leases that expire at various dates through November 2024. The Company's primary manufacturing facilities and executive offices are currently under a long-term lease that expires on July 31, 2019. The rent expenses (including real estate taxes and common area maintenance costs) were $18,271 and $19,790 for the three months ended September 30, 2014 and 2013, respectively, and $55,611 and $59,154 for the nine months ended September 30, 2014 and 2013, respectively. The Company did not incur any significant contingent rent during these periods. Rent expense is allocated to cost of sales for production-related activities, selling expenses for retail stores, and general and administrative expenses in the consolidated statements of operations. | |
Customs and Duties | |
In 2012, German customs audited the import records of the Company’s German subsidiary for the years 2009 through 2011 and issued retroactive punitive duty assessments of $5,409 on the Company’s imports, including interest and penalties, at the September 30, 2014 foreign currency exchange rate (the assessment was issued in Euros). The German customs imposed a substantially higher tariff rate than the original rate that the Company had paid on the imports, more than doubling the amount of the tariff that the Company would have to pay. The assessments of additional retaliatory duty originated from a trade dispute between Europe and the U.S. which had nothing to do with the Company. | |
Despite the ongoing appeals of the assessment in the German courts and European Commission, the German authorities demanded, and the Company paid $4,390 in the third quarter of 2014 and the final balance of $85 in the fourth quarter of 2014. The Company recorded the duty portion of $83 in cost of sales and the retaliatory duties, interest and penalties of $5,326 in general and administrative expenses in its consolidated statements of operations. Additionally, the Company is subject to, and has recorded charges related to, customs settlements and contingencies in other jurisdictions. | |
The Company believes that it has valid arguments to challenge the merit of the German customs assessment and intends to vigorously defend its position in the German courts and before the European Commission. At this time, the outcome of the legal proceedings is subject to significant uncertainty and no assurance can be made that this matter will result in a full or partial recovery of this payment. | |
Mr. Charney Investigation | |
In connection with the June 18, 2014 suspension of the Company's CEO, Mr. Charney, a committee of the Board is charged with investigating potential misconduct by Mr. Charney. As the investigation is ongoing, no assurance can be made regarding the outcome of the investigation. | |
OSHA Settlement | |
In 2011, an industrial accident at the Company's facility in Orange County, California resulted in the fatality of a Company's employee. In accordance with law, a mandatory criminal investigation was initiated. In early August 2014, the Company and the Orange County district attorney's office began to negotiate a resolution of potential claims related to the accident, and the Company accrued $1,000 in costs representing its best estimate of the cost to settle this matter. On August 19, 2014, a settlement of all claims related to the criminal investigation, pursuant to which the Company paid $1,000, was approved by the California Superior Court in Orange County. | |
Real Estate Matter | |
The landlord for the Company's headquarters and manufacturing facility in Los Angeles, California has identified certain alleged breaches under its lease. The Company is currently engaging with the landlord to resolve this dispute. Should the Company fail to resolve this matter on acceptable terms, they could result in material liability. | |
Advertising | |
The Company had approximately $980 in open advertising commitments at September 30, 2014, which were primarily allocated among print advertisements in newspapers or magazines and outdoor advertising. The majority of these commitments are expected to be paid during the remainder of 2014 and the first half of 2015. |
Workers_Compensation_and_Other
Workers' Compensation and Other Self-Insurance Reserves | 9 Months Ended |
Sep. 30, 2014 | |
Workers' Compensation and Other Self-Insurance Reserves [Abstract] | ' |
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | ' |
Workers' Compensation and Other Self-Insurance Reserves | |
The Company uses a combination of third-party insurance and self-insurance for a number of risks including workers' compensation, medical benefits provided to employees, and general liability claims. General liability primarily relates to litigation that arises from store operations. Self-insurance reserves include estimates of filed claims carried at their expected ultimate settlement value and claims incurred but not yet reported. | |
Estimating liability is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the reserve required. Changes in future inflation rates, litigation trends, legal interpretations, benefit levels, and settlement patterns, among other factors, can impact ultimate claim costs. The Company estimates liability by utilizing loss development factors based on its specific data to project the future development of incurred losses. Loss estimates are adjusted based upon actual claim settlements and reported claims. Although the Company does not expect ultimate claim costs significantly differ from its estimates, self-insurance reserves could be affected if actual developed claims considerably fluctuate from the historical trends and the assumptions applied. | |
The Company's estimated claims are discounted using a rate of 1.54% with a duration that approximates the duration of its self-insurance reserve portfolio. The undiscounted liabilities were $19,619 and $15,809 as of September 30, 2014 and December 31, 2013, respectively. | |
The workers' compensation liability is based on an estimate of losses for claims incurred but not paid at the end of the period. Funding is made directly to the providers and/or claimants by the insurance company. To guarantee performance under the workers' compensation program, the Company issued standby letters of credit of $500 and $450 with insurance companies being the beneficiaries as of September 30, 2014 and December 31, 2013, respectively, and cash deposits of $16,124 in favor of insurance company beneficiaries as of both September 30, 2014 and December 31, 2013. At September 30, 2014, the Company recorded a total reserve of $18,792, of which $5,086 is included in accrued expenses and $13,706 is included in other long-term liabilities on the consolidated balance sheets. At December 31, 2013, the Company recorded a total reserve of $15,356, of which $3,871 is included in accrued expenses and $11,485 is included in other long-term liabilities on the consolidated balance sheets. | |
The Company self-insures its health insurance benefit obligations while the claims are administered through a third party administrator. The medical benefit liability is based on estimated losses for claims incurred but not paid at the end of the period. Funding is made directly to the providers and/or claimants by the insurance company. The Company's total reserve of $1,386 and $2,512 was included in accrued expenses in the consolidated balance sheets at September 30, 2014 and December 31, 2013, respectively. |
Business_Segment_and_Geographi
Business Segment and Geographic Area Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
Business Segment and Geographic Area Information | ||||||||||||||||||||
The Company reports the following four operating segments based on the management approach: U.S. Wholesale, U.S. Retail, Canada, and International. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. | ||||||||||||||||||||
The U.S. Wholesale segment consists of the Company's wholesale operations of sales of undecorated apparel products to distributors and third party screen printers in the U.S. as well as its online consumer sales in the U.S. The U.S. Retail segment consists of the Company's retail operations in the U.S., which comprised 138 retail stores as of September 30, 2014. The Canada segment includes wholesale, retail and online consumer operations in Canada. As of September 30, 2014, the retail operations in the Canada segment comprised 31 retail stores. The International segment includes wholesale, retail, and online consumer operations outside of the U.S. and Canada. As of September 30, 2014, the retail operations in the International segment comprised 76 retail stores operating in 18 countries outside the U.S. and Canada. All of the Company's retail stores sell its apparel products directly to consumers. | ||||||||||||||||||||
The Company evaluates the performance of its operating segments primarily based on net sales and operating income or loss from operations. Operating income or loss for each segment does not include unallocated corporate general and administrative expenses, interest expense and other miscellaneous income/expense items. Corporate general and administrative expenses include, but are not limited to, human resources, legal, finance, information technology, accounting, executive compensation and various other corporate level expenses. | ||||||||||||||||||||
The following tables present key financial information of the Company's reportable segments before unallocated corporate expenses: | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
U.S. Wholesale | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale net sales | $ | 41,179 | $ | 0 | $ | 2,699 | $ | 3,007 | $ | 46,885 | ||||||||||
Retail net sales | 0 | 50,277 | 9,957 | 35,588 | 95,822 | |||||||||||||||
Online consumer net sales | 8,797 | 0 | 558 | 3,807 | 13,162 | |||||||||||||||
Total net sales to external customers | 49,976 | 50,277 | 13,214 | 42,402 | 155,869 | |||||||||||||||
Gross profit | 13,761 | 32,722 | 7,343 | 28,713 | 82,539 | |||||||||||||||
Income (loss) from segment operations | 7,178 | 2,235 | 1,316 | (937 | ) | 9,792 | ||||||||||||||
Depreciation and amortization | 2,132 | 2,807 | 414 | 1,051 | 6,404 | |||||||||||||||
Capital expenditures | (24 | ) | 1,024 | 160 | 428 | 1,588 | ||||||||||||||
Retail store impairment | 0 | 581 | 114 | 498 | 1,193 | |||||||||||||||
Deferred rent benefit | (15 | ) | (284 | ) | (56 | ) | (165 | ) | (520 | ) | ||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
U.S. | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale | ||||||||||||||||||||
Wholesale net sales | $ | 41,232 | $ | 0 | $ | 3,044 | $ | 1,725 | $ | 46,001 | ||||||||||
Retail net sales | 0 | 54,303 | 11,321 | 39,278 | 104,902 | |||||||||||||||
Online consumer net sales | 9,129 | 0 | 668 | 3,843 | 13,640 | |||||||||||||||
Total net sales to external customers | 50,361 | 54,303 | 15,033 | 44,846 | 164,543 | |||||||||||||||
Gross profit | 13,390 | 34,755 | 8,477 | 28,018 | 84,640 | |||||||||||||||
Income (loss) from segment operations | 1,407 | (317 | ) | 1,091 | 2,987 | 5,168 | ||||||||||||||
Depreciation and amortization | 1,934 | 3,172 | 507 | 1,125 | 6,738 | |||||||||||||||
Capital expenditures | 1,360 | 2,387 | 540 | 983 | 5,270 | |||||||||||||||
Retail store impairment | 0 | 0 | 145 | 88 | 233 | |||||||||||||||
Deferred rent expense (benefit) | 5 | (338 | ) | (66 | ) | (148 | ) | (547 | ) | |||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
U.S. Wholesale | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale net sales | $ | 128,361 | $ | 0 | $ | 7,434 | $ | 7,007 | $ | 142,802 | ||||||||||
Retail net sales | 0 | 141,712 | 27,137 | 100,800 | 269,649 | |||||||||||||||
Online consumer net sales | 28,606 | 0 | 2,120 | 12,185 | 42,911 | |||||||||||||||
Total net sales to external customers | 156,967 | 141,712 | 36,691 | 119,992 | 455,362 | |||||||||||||||
Gross profit | 47,122 | 91,521 | 20,003 | 78,254 | 236,900 | |||||||||||||||
Income (loss) from segment operations | 26,045 | (560 | ) | 1,912 | 1,714 | 29,111 | ||||||||||||||
Depreciation and amortization | 6,497 | 8,972 | 1,269 | 3,084 | 19,822 | |||||||||||||||
Capital expenditures | 2,133 | 3,496 | 353 | 2,693 | 8,675 | |||||||||||||||
Retail store impairment | 0 | 696 | 114 | 1,111 | 1,921 | |||||||||||||||
Deferred rent benefit | (415 | ) | (2,636 | ) | (155 | ) | (455 | ) | (3,661 | ) | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
U.S. | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale | ||||||||||||||||||||
Wholesale net sales | $ | 119,159 | $ | 0 | $ | 9,236 | $ | 6,297 | $ | 134,692 | ||||||||||
Retail net sales | 0 | 149,811 | 31,664 | 105,629 | 287,104 | |||||||||||||||
Online consumer net sales | 28,365 | 0 | 1,942 | 12,736 | 43,043 | |||||||||||||||
Total net sales to external customers | 147,524 | 149,811 | 42,842 | 124,662 | 464,839 | |||||||||||||||
Gross profit | 40,359 | 97,248 | 25,244 | 78,527 | 241,378 | |||||||||||||||
Income (loss) from segment operations | 12,887 | (2,239 | ) | 1,592 | 6,291 | 18,531 | ||||||||||||||
Depreciation and amortization | 5,327 | 9,231 | 1,388 | 3,209 | 19,155 | |||||||||||||||
Capital expenditures | 5,847 | 9,377 | 970 | 2,713 | 18,907 | |||||||||||||||
Retail store impairment | 0 | 78 | 145 | 88 | 311 | |||||||||||||||
Deferred rent expense (benefit) | 43 | (1,114 | ) | (279 | ) | (317 | ) | (1,667 | ) | |||||||||||
Reconciliation of reportable segments combined income from operations for the three and nine months ended September 30, 2014 and 2013 to the consolidated loss before income taxes is as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Consolidated income from operations of reportable segments | $ | 9,792 | $ | 5,168 | $ | 29,111 | $ | 18,531 | ||||||||||||
Unallocated corporate expenses | (19,871 | ) | (9,661 | ) | (44,106 | ) | (35,415 | ) | ||||||||||||
Interest expense | (9,858 | ) | (10,121 | ) | (29,916 | ) | (29,555 | ) | ||||||||||||
Foreign currency transaction (loss) gain | (616 | ) | 449 | (748 | ) | (422 | ) | |||||||||||||
Unrealized gain (loss) on change in fair value of warrants | 1,785 | 12,922 | 6,250 | (5,225 | ) | |||||||||||||||
Gain (loss) on extinguishment of debt | 171 | 0 | 171 | (32,101 | ) | |||||||||||||||
Other income (expense) | 57 | (58 | ) | 5 | (42 | ) | ||||||||||||||
Consolidated loss before income taxes | $ | (18,540 | ) | $ | (1,301 | ) | $ | (39,233 | ) | $ | (84,229 | ) | ||||||||
Net sales by geographic location of customers for the three and nine months ended September 30, 2014 and 2013, are as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
United States | $ | 100,253 | $ | 104,664 | $ | 298,679 | $ | 297,335 | ||||||||||||
Europe (excluding the United Kingdom) | 17,440 | 19,065 | 50,105 | 51,996 | ||||||||||||||||
Canada | 13,214 | 15,033 | 36,691 | 42,842 | ||||||||||||||||
United Kingdom | 11,158 | 11,552 | 31,527 | 31,735 | ||||||||||||||||
South Korea | 4,287 | 2,987 | 9,867 | 8,093 | ||||||||||||||||
Japan | 3,203 | 4,977 | 10,266 | 14,421 | ||||||||||||||||
Australia | 2,306 | 2,367 | 6,891 | 7,575 | ||||||||||||||||
China | 2,262 | 1,950 | 6,002 | 5,526 | ||||||||||||||||
Other foreign countries | 1,746 | 1,948 | 5,334 | 5,316 | ||||||||||||||||
Total consolidated net sales | $ | 155,869 | $ | 164,543 | $ | 455,362 | $ | 464,839 | ||||||||||||
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Litigation Settlement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
Litigation | |
The Company is subject to various claims and contingencies in the normal course of business that arise from litigation, business transactions, employee-related matters, or taxes. The Company establishes reserves when it believes a loss is probable and is able to estimate its potential exposure. For loss contingencies believed to be reasonably possible, the Company also discloses the nature of the loss contingency and an estimate of the possible loss, range of loss, or a statement that such an estimate cannot be made. While actual losses may differ from the amounts recorded and the ultimate outcome of our pending actions is generally not yet determinable, the Company does not believe the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on its business, financial position, results of operations, or cash flows. In all cases, the Company vigorously defends itself unless a reasonable settlement appears appropriate. | |
Wage and Hour Actions | |
In April 2014, the five former employees' wage and hour cases including Guillermo Ruiz, Antonio Partida, Emily Truong, Jessica Heupel, and Anthony Heupel were settled on an aggregate and class-wide basis for $850, and a final approval was granted by the presiding arbitrator. On September 12, 2014, the court granted final approval of the settlement. The Company did not have insurance coverage for this matter. | |
Shareholder Derivative Actions | |
In 2010, two shareholder derivative lawsuits were filed in the United States District Court for the Central District of California (the "Court") which were subsequently consolidated for all purposes into a case entitled In re American Apparel, Inc. Shareholder Derivative Litigation, Lead Case No. CV106576 (the "Federal Derivative Action"). Plaintiffs in the Federal Derivative Action alleged a cause of action for breach of fiduciary duty arising out of (i) the Company's alleged failure to maintain adequate accounting and internal control policies and procedures; (ii) the Company's alleged violation of state and federal immigration laws in connection with the previously disclosed termination of over 1,500 employees following an Immigration and Customs Enforcement inspection; and (iii) the Company's alleged failure to implement controls sufficient to prevent a sexually hostile and discriminatory work environment. The Company does not maintain any direct exposure to loss in connection with these shareholder derivative lawsuits. The Company's status as a "Nominal Defendant" in the actions reflects the fact that the lawsuits are maintained by the named plaintiffs on behalf of American Apparel and that plaintiffs seek damages on the Company's behalf. The Company filed a motion to dismiss the Federal Derivative Action which was granted with leave to amend on July 31, 2012. Plaintiffs did not amend the complaint and subsequently filed a motion to dismiss each of their claims, with prejudice, for the stated purpose of taking an immediate appeal of the Court's July 31, 2012 order. On October 16, 2012, the Court granted the Plaintiffs' motion to dismiss and entered judgment accordingly. On November 12, 2012, Plaintiffs filed a Notice of Appeal to the Ninth Circuit Court of Appeals where the case is currently pending. | |
Four shareholder derivative lawsuits were filed in fall of 2010 in the Superior Court of the State of California for the County of Los Angeles (the "Superior Court") which were subsequently consolidated for all purposes into a case entitled In re American Apparel, Inc. Shareholder Derivative Litigation, Lead Case No. BC 443763 (the "State Derivative Action"). Three of the matters comprising the State Derivative Action alleged causes of action for breach of fiduciary duty arising out of (i) the Company's alleged failure to maintain adequate accounting and internal control policies and procedures; and (ii) the Company's alleged violation of state and federal immigration laws in connection with the previously disclosed termination of over 1,500 employees following an Immigration and Customs Enforcement inspection. The fourth matter alleges seven causes of action for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets also arising out of the same allegations. On April 12, 2011, the Superior Court issued an order granting a stay (which currently remains in place) of the State Derivative Action on the grounds that, among other reasons, the case is duplicative of the Federal Derivative Action, as well as the Federal Securities Action (see below). | |
Both the Federal Derivative Action and State Derivative Actions are covered under the Company's Directors and Officers Liability insurance policy, subject to a deductible and a reservation of rights. | |
In July 2014, two shareholder derivative lawsuits were filed in the Court and alleged similar causes of action for breach of fiduciary duty by failing to (i) maintain adequate internal control and exercise proper oversight over Mr. Charney, whose alleged misconduct and mismanagement has purportedly harmed the Company's operations and financial condition, (ii) ensure Mr. Charney's suspension as CEO did not trigger material defaults under two of the Company's credit agreements, and (iii) prevent Mr. Charney from increasing his ownership percentage of the Company. The lawsuits primarily seek to recover damages and reform corporate governance and internal procedures. The Company does not maintain any direct exposure to loss in connection with these shareholder derivative lawsuits. The Company's status as a "Nominal Defendant" in the actions reflects the fact that the lawsuits are maintained by the named plaintiffs on behalf of American Apparel and that plaintiffs seek damages on the Company's behalf. These shareholder derivative lawsuits are covered under the Company's Directors and Officers Liability insurance policy, subject to a deductible and a reservation of rights. | |
Should the above matters (i.e., the Federal Derivative Action or the State Derivative Action) be decided against the Company in an amount that exceeds the Company's insurance coverage, or if liability is imposed on grounds which fall outside the scope of the Company's Directors and Officers Liability insurance coverage, the Company could not only incur a substantial liability, but also experience an increase in similar suits and suffer reputational harm. The Company is unable to predict the financial outcome of these matters at this time, and any views formed as to the viability of these claims or the financial exposure which could result may change from time to time as the matters proceed through their course. However, no assurance can be made that these matters, either individually or together with the potential for similar suits and reputational harm, will not result in a material financial exposure, which could have a material adverse effect upon the Company's financial condition, results of operations, or cash flows. | |
Federal Securities Action | |
Four putative class action lawsuits (Case No. CV106352 MMM (RCx), Case No. CV106513 MMM (RCx), Case No. CV106516 MMM (RCx), and Case No. CV106680 GW (JCGx)) were filed in fall of 2010 in the United States District Court for the Central District of California ("USDC") which were subsequently consolidated for all purposes into a case entitled In re American Apparel, Inc. Shareholder Litigation, Lead Case No. CV106352 MMM (JCGx) (the "Federal Securities Action"). The lead plaintiff appointed by the USDC alleges two causes of action for violations of Section 10(b) and 20(a) of the 1934 Act, and Rule 10b-5 promulgated under Section 10(b), arising out of alleged misrepresentations contained in the Company's press releases, public filings with the SEC, and other public statements relating to (i) the adequacy of the Company's internal and financial control policies and procedures; (ii) the Company's employment practices; and (iii) the effect that the dismissal of over 1,500 employees following an Immigration and Customs Enforcement inspection would have on the Company. Plaintiff seeks damages in an unspecified amount, reasonable attorneys' fees and costs, and equitable relief as the USDC may deem proper. On November 6, 2013, the USDC issued an order staying the case pending ongoing settlement discussions between the parties. Plaintiff filed an unopposed motion of preliminary approval which was granted on April 16, 2014 without oral argument. On July 28, 2014, the USDC approved the settlement, and final judgment was entered on July 30, 2014. The settlement will result in a payment by the Company's insurance carrier of $4,800. | |
Employment Matters | |
The Company has previously disclosed arbitrations filed by the Company on or about February 17, 2011, related to cases filed in the Supreme Court of New York, County of Kings (Case No. 5018-1) and Superior Court of the State of California for the County of Los Angeles (Case Nos. BC457920 and BC460331) against American Apparel, Mr. Charney and certain members of the Board of Directors asserting claims of sexual harassment, assault and battery, impersonation through the internet, defamation and other related claims. The Company has settled or obtained a dismissal of all but one of these claims and believes that its aggregate liability for the settlements, net of insurance, will be less than $1,300. Discovery has commenced in the remaining arbitration. | |
In addition, the Company is currently engaged in other employment-related claims and other matters incidental to the Company’s business. The Company believes that all such claims are without merit or not material and intends to vigorously dispute the validity of the plaintiffs’ claims. While the final resolution of such claims cannot be determined based on information at this time, the Company believes, but cannot provide assurance that, the amount and ultimate liability, if any, with respect to these actions will not materially affect its business, financial position, results of operations, or cash flows. Should any of these matters be decided against the Company, it could not only incur liability but also experience an increase in similar suits and suffer reputational harm. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information Level 1 (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ||||||||||||||||||||
The Notes which constitute debt obligations of American Apparel Inc. (the "Parent") are fully and unconditionally guaranteed, jointly and severally, and on a senior secured basis, by the Company's existing and future 100% owned direct and indirect domestic subsidiaries, subject to customary automatic release provisions, including the satisfaction and discharge, or defeasance, or payment in full of the principal of, premium, if any, accrued and unpaid interest on the Notes, or, in certain circumstances, the sale or other disposition of substantially all of the assets of the subsidiary guarantor. | ||||||||||||||||||||
The following presents the Parent's consolidating balance sheets as of September 30, 2014 and December 31, 2013 and its consolidating statements of operations for the three and nine months ended September 30, 2014 and 2013, consolidating statements of cash flows for the nine months ended September 30, 2014 and 2013, the Company's material guarantor subsidiaries and the non-guarantor subsidiaries, and the elimination entries necessary to present the Company's financial statements on a consolidated basis. These condensed consolidating financial information should be read in conjunction with the Company's consolidated financial statement. | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
Trade accounts receivable, net | 0 | 21,346 | 5,430 | 0 | 26,776 | |||||||||||||||
Intercompany accounts receivable, net | 256,164 | (240,669 | ) | (15,495 | ) | 0 | 0 | |||||||||||||
Inventories, net | 0 | 117,144 | 33,746 | 70 | 150,960 | |||||||||||||||
Other current assets | 376 | 12,429 | 3,990 | 0 | 16,795 | |||||||||||||||
Total current assets | 256,540 | (88,674 | ) | 35,984 | 70 | 203,920 | ||||||||||||||
Property and equipment, net | 0 | 42,732 | 12,559 | 0 | 55,291 | |||||||||||||||
Investments in subsidiaries | (105,031 | ) | 17,396 | 0 | 87,635 | 0 | ||||||||||||||
Other assets, net | 9,251 | 28,760 | 9,967 | 0 | 47,978 | |||||||||||||||
TOTAL ASSETS | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Revolving credit facilities and current portion of long-term debt | $ | 0 | $ | 27,047 | $ | 13 | $ | 0 | $ | 27,060 | ||||||||||
Accounts payable | 0 | 30,951 | 2,917 | 0 | 33,868 | |||||||||||||||
Accrued expenses and other current liabilities | 17,756 | 30,455 | 13,253 | 0 | 61,464 | |||||||||||||||
Fair value of warrant liability | 14,704 | 0 | 0 | 0 | 14,704 | |||||||||||||||
Other current liabilities | 0 | 8,190 | 2,244 | 0 | 10,434 | |||||||||||||||
Total current liabilities | 32,460 | 96,643 | 18,427 | 0 | 147,530 | |||||||||||||||
Long-term debt, net | 215,891 | 0 | 269 | 0 | 216,160 | |||||||||||||||
Other long-term liabilities | 0 | 26,037 | 5,053 | 0 | 31,090 | |||||||||||||||
TOTAL LIABILITIES | 248,351 | 122,680 | 23,749 | 0 | 394,780 | |||||||||||||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
Common stock | 18 | 100 | 492 | (592 | ) | 18 | ||||||||||||||
Additional paid-in capital | 217,650 | 6,726 | 7,869 | (14,595 | ) | 217,650 | ||||||||||||||
Accumulated other comprehensive (loss) income | (5,823 | ) | (1,682 | ) | (2,559 | ) | 4,241 | (5,823 | ) | |||||||||||
(Accumulated deficit) retained earnings | (297,279 | ) | (127,610 | ) | 28,959 | 98,651 | (297,279 | ) | ||||||||||||
Less: Treasury stock | (2,157 | ) | 0 | 0 | 0 | (2,157 | ) | |||||||||||||
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (87,591 | ) | (122,466 | ) | 34,761 | 87,705 | (87,591 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash | $ | 0 | $ | 512 | $ | 8,164 | $ | 0 | $ | 8,676 | ||||||||||
Trade accounts receivable, net | 0 | 15,109 | 5,592 | 0 | 20,701 | |||||||||||||||
Intercompany accounts receivable, net | 247,414 | (224,181 | ) | (23,233 | ) | 0 | 0 | |||||||||||||
Inventories, net | 0 | 129,716 | 39,736 | (74 | ) | 169,378 | ||||||||||||||
Other current assets | 97 | 10,442 | 6,002 | 0 | 16,541 | |||||||||||||||
Total current assets | 247,511 | (68,402 | ) | 36,261 | (74 | ) | 215,296 | |||||||||||||
Property and equipment, net | 0 | 53,424 | 15,879 | 0 | 69,303 | |||||||||||||||
Investments in subsidiaries | (94,161 | ) | 18,158 | 0 | 76,003 | 0 | ||||||||||||||
Other assets, net | 9,282 | 27,934 | 11,937 | 0 | 49,153 | |||||||||||||||
TOTAL ASSETS | $ | 162,632 | $ | 31,114 | $ | 64,077 | $ | 75,929 | $ | 333,752 | ||||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Revolving credit facilities and current portion of long-term debt | $ | 0 | $ | 43,586 | $ | 456 | $ | 0 | $ | 44,042 | ||||||||||
Accounts payable | 0 | 34,738 | 3,552 | 0 | 38,290 | |||||||||||||||
Accrued expenses and other current liabilities | 5,952 | 28,344 | 15,722 | 0 | 50,018 | |||||||||||||||
Fair value of warrant liability | 20,954 | 0 | 0 | 0 | 20,954 | |||||||||||||||
Other current liabilities | 0 | 6,830 | 1,855 | 0 | 8,685 | |||||||||||||||
Total current liabilities | 26,906 | 113,498 | 21,585 | 0 | 161,989 | |||||||||||||||
Long-term debt, net | 213,130 | 47 | 291 | 0 | 213,468 | |||||||||||||||
Other long-term liabilities | 0 | 29,711 | 5,988 | 0 | 35,699 | |||||||||||||||
TOTAL LIABILITIES | 240,036 | 143,256 | 27,864 | 0 | 411,156 | |||||||||||||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
Common stock | 11 | 100 | 492 | (592 | ) | 11 | ||||||||||||||
Additional paid-in capital | 185,472 | 6,726 | 7,685 | (14,411 | ) | 185,472 | ||||||||||||||
Accumulated other comprehensive (loss) income | (4,306 | ) | (543 | ) | (671 | ) | 1,214 | (4,306 | ) | |||||||||||
(Accumulated deficit) retained earnings | (256,424 | ) | (118,425 | ) | 28,707 | 89,718 | (256,424 | ) | ||||||||||||
Less: Treasury stock | (2,157 | ) | 0 | 0 | 0 | (2,157 | ) | |||||||||||||
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (77,404 | ) | (112,142 | ) | 36,213 | 75,929 | (77,404 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 162,632 | $ | 31,114 | $ | 64,077 | $ | 75,929 | $ | 333,752 | ||||||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 110,401 | $ | 55,621 | $ | (10,153 | ) | $ | 155,869 | |||||||||
Cost of sales | 0 | 67,669 | 15,550 | (9,889 | ) | 73,330 | ||||||||||||||
Gross profit | 0 | 42,732 | 40,071 | (264 | ) | 82,539 | ||||||||||||||
Selling and distribution expenses | 0 | 30,202 | 22,438 | 0 | 52,640 | |||||||||||||||
General and administrative expenses | 10,101 | 12,274 | 16,401 | 9 | 38,785 | |||||||||||||||
Retail store impairment | 0 | 580 | 613 | 0 | 1,193 | |||||||||||||||
(Loss) income from operations | (10,101 | ) | (324 | ) | 619 | (273 | ) | (10,079 | ) | |||||||||||
Interest expense and other expense | 7,236 | 1,220 | 5 | 0 | 8,461 | |||||||||||||||
Equity in loss (earnings) of subsidiaries | 1,847 | 53 | 0 | (1,900 | ) | 0 | ||||||||||||||
(Loss) income before income taxes | (19,184 | ) | (1,597 | ) | 614 | 1,627 | (18,540 | ) | ||||||||||||
Income tax provision | 0 | 109 | 535 | 0 | 644 | |||||||||||||||
Net (loss) income | $ | (19,184 | ) | $ | (1,706 | ) | $ | 79 | $ | 1,627 | $ | (19,184 | ) | |||||||
Other comprehensive (loss) income, net of tax | (1,919 | ) | (1,479 | ) | (2,269 | ) | 3,748 | (1,919 | ) | |||||||||||
Comprehensive (loss) income | $ | (21,103 | ) | $ | (3,185 | ) | $ | (2,190 | ) | $ | 5,375 | $ | (21,103 | ) | ||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 121,352 | $ | 60,015 | $ | (16,824 | ) | $ | 164,543 | |||||||||
Cost of sales | 0 | 71,878 | 24,876 | (16,851 | ) | 79,903 | ||||||||||||||
Gross profit | 0 | 49,474 | 35,139 | 27 | 84,640 | |||||||||||||||
Selling and distribution expenses | 0 | 39,747 | 24,235 | 0 | 63,982 | |||||||||||||||
General and administrative expenses | (195 | ) | 14,959 | 10,140 | 14 | 24,918 | ||||||||||||||
Retail store impairment | 0 | 0 | 233 | 0 | 233 | |||||||||||||||
Income (loss) from operations | 195 | (5,232 | ) | 531 | 13 | (4,493 | ) | |||||||||||||
Interest expense and other expense | (3,521 | ) | 169 | 160 | 0 | (3,192 | ) | |||||||||||||
Equity in loss (earnings) of subsidiaries | 5,229 | (833 | ) | 0 | (4,396 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (1,513 | ) | (4,568 | ) | 371 | 4,409 | (1,301 | ) | ||||||||||||
Income tax provisions | 0 | 0 | 212 | 0 | 212 | |||||||||||||||
Net (loss) income | $ | (1,513 | ) | $ | (4,568 | ) | $ | 159 | $ | 4,409 | $ | (1,513 | ) | |||||||
Other comprehensive income (loss), net of tax | 1,445 | 1,066 | 1,411 | (2,477 | ) | 1,445 | ||||||||||||||
Comprehensive (loss) income | $ | (68 | ) | $ | (3,502 | ) | $ | 1,570 | $ | 1,932 | $ | (68 | ) | |||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 333,156 | $ | 156,683 | $ | (34,477 | ) | $ | 455,362 | |||||||||
Cost of sales | 0 | 199,593 | 53,131 | (34,262 | ) | 218,462 | ||||||||||||||
Gross profit | 0 | 133,563 | 103,552 | (215 | ) | 236,900 | ||||||||||||||
Selling and distribution expenses | 0 | 91,851 | 67,294 | 0 | 159,145 | |||||||||||||||
General and administrative expenses | 10,986 | 46,476 | 33,367 | 0 | 90,829 | |||||||||||||||
Retail store impairment | 0 | 695 | 1,226 | 0 | 1,921 | |||||||||||||||
(Loss) income from operations | (10,986 | ) | (5,459 | ) | 1,665 | (215 | ) | (14,995 | ) | |||||||||||
Interest expense and other expense | 20,518 | 3,774 | (54 | ) | 0 | 24,238 | ||||||||||||||
Equity in loss (earnings) of subsidiaries | 9,351 | (200 | ) | 0 | (9,151 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (40,855 | ) | (9,033 | ) | 1,719 | 8,936 | (39,233 | ) | ||||||||||||
Income tax provision | 0 | 154 | 1,468 | 0 | 1,622 | |||||||||||||||
Net (loss) income | $ | (40,855 | ) | $ | (9,187 | ) | $ | 251 | $ | 8,936 | $ | (40,855 | ) | |||||||
Other comprehensive (loss) income, net of tax | (1,517 | ) | (1,139 | ) | (1,888 | ) | 3,027 | (1,517 | ) | |||||||||||
Comprehensive (loss) income | $ | (42,372 | ) | $ | (10,326 | ) | $ | (1,637 | ) | $ | 11,963 | $ | (42,372 | ) | ||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 335,104 | $ | 169,000 | $ | (39,265 | ) | $ | 464,839 | |||||||||
Cost of sales | 0 | 200,155 | 63,680 | (40,374 | ) | 223,461 | ||||||||||||||
Gross profit | 0 | 134,949 | 105,320 | 1,109 | 241,378 | |||||||||||||||
Selling and distribution expenses | 0 | 105,488 | 71,747 | 0 | 177,235 | |||||||||||||||
General and administrative expenses | 311 | 50,638 | 29,757 | 10 | 80,716 | |||||||||||||||
Retail store impairment | 0 | 78 | 233 | 0 | 311 | |||||||||||||||
(Loss) income from operations | (311 | ) | (21,255 | ) | 3,583 | 1,099 | (16,884 | ) | ||||||||||||
Interest expense and other expense | 56,764 | 10,195 | 386 | 0 | 67,345 | |||||||||||||||
Equity in loss (earnings) of subsidiaries | 28,453 | (2,424 | ) | 0 | (26,029 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (85,528 | ) | (29,026 | ) | 3,197 | 27,128 | (84,229 | ) | ||||||||||||
Income tax (benefit) provisions | 0 | (43 | ) | 1,342 | 0 | 1,299 | ||||||||||||||
Net (loss) income | $ | (85,528 | ) | $ | (28,983 | ) | $ | 1,855 | $ | 27,128 | $ | (85,528 | ) | |||||||
Other comprehensive (loss) income, net of tax | (785 | ) | (282 | ) | (847 | ) | 1,129 | (785 | ) | |||||||||||
Comprehensive (loss) income | $ | (86,313 | ) | $ | (29,265 | ) | $ | 1,008 | $ | 28,257 | $ | (86,313 | ) | |||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 9,600 | $ | (18,005 | ) | $ | 11,712 | $ | 0 | $ | 3,307 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | 0 | (5,629 | ) | (3,046 | ) | 0 | (8,675 | ) | ||||||||||||
Proceeds from sale of fixed assets | 0 | 0 | 52 | 0 | 52 | |||||||||||||||
Restricted cash | 0 | 0 | 219 | 0 | 219 | |||||||||||||||
Net cash used in investing activities | 0 | (5,629 | ) | (2,775 | ) | 0 | (8,404 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Cash overdraft | 0 | (102 | ) | 0 | 0 | (102 | ) | |||||||||||||
Repayments under revolving credit facilities, net | 0 | (16,532 | ) | (433 | ) | 0 | (16,965 | ) | ||||||||||||
Repayments of term loans and notes payable | 0 | (47 | ) | (10 | ) | 0 | (57 | ) | ||||||||||||
Payments of debt issuance costs | (1,745 | ) | (354 | ) | 0 | 0 | (2,099 | ) | ||||||||||||
Net proceeds from issuance of common stock | 28,446 | 0 | 0 | 0 | 28,446 | |||||||||||||||
Payment of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | (414 | ) | 0 | 0 | 0 | (414 | ) | |||||||||||||
Repayments of capital lease obligations | 0 | (1,885 | ) | (47 | ) | 0 | (1,932 | ) | ||||||||||||
Advances to/from affiliates | (35,887 | ) | 43,118 | (7,231 | ) | 0 | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (9,600 | ) | 24,198 | (7,721 | ) | 0 | 6,877 | |||||||||||||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 0 | 0 | (1,067 | ) | 0 | (1,067 | ) | |||||||||||||
NET INCREASE IN CASH | 0 | 564 | 149 | 0 | 713 | |||||||||||||||
Cash, beginning of period | 0 | 512 | 8,164 | 0 | 8,676 | |||||||||||||||
Cash, end of period | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Property and equipment acquired, and included in accounts payable | $ | 0 | $ | 217 | $ | 254 | $ | 0 | $ | 471 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 977 | $ | (25,732 | ) | $ | 15,951 | $ | 0 | $ | (8,804 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | 0 | (15,223 | ) | (3,684 | ) | 0 | (18,907 | ) | ||||||||||||
Proceeds from sale of fixed assets | 0 | (14 | ) | 44 | 0 | 30 | ||||||||||||||
Restricted cash | 0 | 3,265 | (1,671 | ) | 0 | 1,594 | ||||||||||||||
Net cash used in investing activities | 0 | (11,972 | ) | (5,311 | ) | 0 | (17,283 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Cash overdraft | 0 | 2,812 | 0 | 0 | 2,812 | |||||||||||||||
Repayments of expired revolving credit facilities, net | 0 | (28,513 | ) | 0 | 0 | (28,513 | ) | |||||||||||||
Borrowings (repayments) under current revolving credit facilities, net | 0 | 32,878 | (4,165 | ) | 0 | 28,713 | ||||||||||||||
Borrowings (repayments) of term loans and notes payable | 4,500 | (29,953 | ) | (10 | ) | 0 | (25,463 | ) | ||||||||||||
Repayment of Lion term loan | (144,149 | ) | 0 | 0 | 0 | (144,149 | ) | |||||||||||||
Issuance of Senior Secured Notes | 199,820 | 0 | 0 | 0 | 199,820 | |||||||||||||||
Payment of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | (2,133 | ) | 0 | 0 | 0 | (2,133 | ) | |||||||||||||
Payments of debt issuance costs | (11,237 | ) | (643 | ) | 0 | 0 | (11,880 | ) | ||||||||||||
Repayments of capital lease obligations | 0 | (739 | ) | (34 | ) | 0 | (773 | ) | ||||||||||||
Advances to/from affiliates | (47,778 | ) | 58,601 | (10,823 | ) | 0 | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (977 | ) | 34,443 | (15,032 | ) | 0 | 18,434 | |||||||||||||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 0 | 0 | (287 | ) | 0 | (287 | ) | |||||||||||||
NET DECREASE IN CASH | 0 | (3,261 | ) | (4,679 | ) | 0 | (7,940 | ) | ||||||||||||
Cash, beginning of period | 0 | 3,796 | 9,057 | 0 | 12,853 | |||||||||||||||
Cash, end of period | $ | 0 | $ | 535 | $ | 4,378 | $ | 0 | $ | 4,913 | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Property and equipment acquired, and included in accounts payable | $ | 0 | $ | 4,682 | $ | 588 | $ | 0 | $ | 5,270 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | |
The condensed consolidated financial statements include the accounts of American Apparel, Inc. and its 100% owned subsidiaries. The condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. | |
The financial data of the Company included herein is unaudited. The condensed consolidated financial statements do not contain certain information that was included in the annual financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2013 as well as other publicly filed documents for more complete descriptions and discussions. In the opinion of management, the condensed consolidated financial statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company's financial position, the results of operations, and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. | |
All intercompany balances and transactions have been eliminated upon consolidation. Certain prior year amounts have been reclassified to conform to the current period presentation. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates include: inventory valuation and obsolescence; valuation and recoverability of long-lived assets, including the values assigned to goodwill and property and equipment; fair value calculations, including derivative liabilities; contingencies, including accruals for the outcome of current litigation and assessments and self-insurance; income taxes, including uncertain income tax positions and recoverability of deferred income taxes and any limitations as to net operating losses ("NOL"); and cash flow projections in assessing future performance related to financial standards requiring a prospective analysis in valuing and classifying assets and liabilities. Actual results could differ from those estimates. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash (the amounts of which may, at times, exceed Federal Deposit Insurance Corporation limits on insurable amounts) and trade accounts receivable (including credit card receivables) relating substantially to the Company's U.S. Wholesale segment. Cash is managed within established guidelines, and the Company mitigates its risk by investing through major financial institutions. The Company had approximately $7,932 and $7,374 held in foreign banks at September 30, 2014 and December 31, 2013, respectively. | |
Concentration of credit risk with respect to trade accounts receivable is limited by performing on-going credit evaluations of its customers and adjusting credit limits based upon payment history and the customer's current credit worthiness. The Company also maintains an insurance policy for certain customers based on a customer's credit rating and established limits. Collections and payments from customers are continuously monitored. One customer in the Company's U.S. Wholesale segment accounted for 17.6% and 14.2% of the Company’s total trade accounts receivable as of September 30, 2014 and December 31, 2013, respectively. The Company maintains an allowance for doubtful accounts which is based upon historical experience and specific customer collection issues that have been identified. While bad debt expenses have historically been within expectations and allowances established, the Company cannot guarantee that it will continue to experience the same credit loss rates that it has in the past. | |
Fair Value Measurements | |
The financial instruments recorded in the consolidated balance sheets include cash, trade accounts receivable (including credit card receivables), accounts payable, revolving credit facilities, senior secured notes, term loans and warrants. Due to their short-term maturity, the carrying values of cash, trade accounts receivables, and accounts payable approximate their fair market values. In addition, the carrying amount of the revolving credit facility from Capital One approximates its fair value because of the variable market interest rate charged to the Company. | |
The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date using the exit price. Accordingly, when market observable data is not readily available, the Company's own assumptions are used to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: | |
Level 1 – Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. | |
Level 2 – Pricing inputs are other than unadjusted quoted prices in active markets, which are based on the following: | |
•Quoted prices for similar assets or liabilities in active markets; | |
•Quoted prices for identical or similar assets or liabilities in non-active markets; or | |
•Either directly or indirectly observable inputs as of the reporting date. | |
Level 3 – Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. The valuation policies and procedures underlying are determined by the Company's accounting and finance team and are approved by the CFO. | |
In certain cases, inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. | |
The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2, or from Level 2 to Level 3. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. | |
As of September 30, 2014, there were no transfers between Levels 1, 2, and 3 of the fair value hierarchy. | |
Summary of Significant Valuation Techniques | |
Level 2 Measurements: | |
Senior secured notes: Estimated based on quoted prices for identical senior secured notes in non-active market. | |
Level 3 Measurements: | |
Term loans: Estimated using a projected discounted cash flow analysis based on unobservable inputs including principal and interest payments and discount rate. A yield rate was estimated using yields rates for publicly traded debt instruments of comparable companies with similar features. See Note 8. | |
Warrants: Estimated using the Binomial Lattice option valuation model. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility. See Notes 8 and 11. | |
Indefinite-lived assets - goodwill: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit, discount rate, working capital requirements, capital expenditures, depreciation and terminal value assumptions. | |
Retail stores: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit and discount rate. The key assumptions used in the estimates of projected cash flows were sales, gross margins, and payroll costs. These forecasts were based on historical trends and take into account recent developments as well as the Company's plans and intentions. | |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of its assets and liabilities, and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined that such amounts will more likely than not go unrealized. Significant weight is given to evidence that can be objectively verified. The determination to record a valuation allowance is based on the recent history of cumulative losses and current operating performance and includes an assessment of the degree to which any losses are driven by items that are unusual in nature or incurred to improve future profitability. In addition, the Company reviews changes in near-term market conditions and any other factors arising during the period which may impact its future operating results. If it becomes more likely than not that a tax asset will be realized, any related valuation allowance of such assets would be reversed. | |
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. Management believes that adequate provisions have been made for all years, but the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. | |
The Company's foreign domiciled subsidiaries are subject to foreign income taxes on earnings in their respective jurisdictions. The Company elected to have its foreign subsidiaries, except for its subsidiaries in Brazil, Canada, China, Ireland, Italy, South Korea, and Spain, consolidated in the Company's U.S. federal income tax return. The Company is generally eligible to receive tax credits on its U.S. federal income tax return for most of the foreign taxes paid by the Company's subsidiaries included in the U.S. federal income tax return. | |
For financial statement purposes, the Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Once this threshold has been met, the Company's measurement of its expected tax benefits is recognized in its financial statements. Gross unrecognized tax benefits are included in current liabilities in the consolidated balance sheets, and interest and penalties on unrecognized tax benefits are recorded in the income tax provision in the consolidated statements of operations. | |
Accounting Standards Updates | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued a new standard on disclosure of uncertainties about an entity's ability to continue as a going concern. The new standard provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. Additionally, an entity must provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In June 2014, the FASB issued a new standard on accounting for share-based payments. The new standard clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The new standard also clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In May 2014, the FASB issued a new standard on recognizing revenue in contracts with customers. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard creates a five-step process to recognize revenue that requires entities to exercise judgment when considering contract terms and relevant facts and circumstances. The new standard also requires expanded disclosures surrounding revenue recognition. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
Other recently issued accounting standards are not expected to have a material effect on the Company's consolidated financial statements. | |
Principles of consolidation and basis of presentation [Policy Text Block] | ' |
Principles of Consolidation and Basis of Presentation | |
The condensed consolidated financial statements include the accounts of American Apparel, Inc. and its 100% owned subsidiaries. The condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. | |
The financial data of the Company included herein is unaudited. The condensed consolidated financial statements do not contain certain information that was included in the annual financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2013 as well as other publicly filed documents for more complete descriptions and discussions. In the opinion of management, the condensed consolidated financial statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company's financial position, the results of operations, and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. | |
All intercompany balances and transactions have been eliminated upon consolidation. Certain prior year amounts have been reclassified to conform to the current period presentation. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash (the amounts of which may, at times, exceed Federal Deposit Insurance Corporation limits on insurable amounts) and trade accounts receivable (including credit card receivables) relating substantially to the Company's U.S. Wholesale segment. Cash is managed within established guidelines, and the Company mitigates its risk by investing through major financial institutions. The Company had approximately $7,932 and $7,374 held in foreign banks at September 30, 2014 and December 31, 2013, respectively. | |
Concentration of credit risk with respect to trade accounts receivable is limited by performing on-going credit evaluations of its customers and adjusting credit limits based upon payment history and the customer's current credit worthiness. The Company also maintains an insurance policy for certain customers based on a customer's credit rating and established limits. Collections and payments from customers are continuously monitored. One customer in the Company's U.S. Wholesale segment accounted for 17.6% and 14.2% of the Company’s total trade accounts receivable as of September 30, 2014 and December 31, 2013, respectively. The Company maintains an allowance for doubtful accounts which is based upon historical experience and specific customer collection issues that have been identified. While bad debt expenses have historically been within expectations and allowances established, the Company cannot guarantee that it will continue to experience the same credit loss rates that it has in the past. | |
Fair Value Measurement, Policy [Policy Text Block] | ' |
Fair Value Measurements | |
The financial instruments recorded in the consolidated balance sheets include cash, trade accounts receivable (including credit card receivables), accounts payable, revolving credit facilities, senior secured notes, term loans and warrants. Due to their short-term maturity, the carrying values of cash, trade accounts receivables, and accounts payable approximate their fair market values. In addition, the carrying amount of the revolving credit facility from Capital One approximates its fair value because of the variable market interest rate charged to the Company. | |
The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date using the exit price. Accordingly, when market observable data is not readily available, the Company's own assumptions are used to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: | |
Level 1 – Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. | |
Level 2 – Pricing inputs are other than unadjusted quoted prices in active markets, which are based on the following: | |
•Quoted prices for similar assets or liabilities in active markets; | |
•Quoted prices for identical or similar assets or liabilities in non-active markets; or | |
•Either directly or indirectly observable inputs as of the reporting date. | |
Level 3 – Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. The valuation policies and procedures underlying are determined by the Company's accounting and finance team and are approved by the CFO. | |
In certain cases, inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. | |
The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2, or from Level 2 to Level 3. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. | |
As of September 30, 2014, there were no transfers between Levels 1, 2, and 3 of the fair value hierarchy. | |
Summary of Significant Valuation Techniques | |
Level 2 Measurements: | |
Senior secured notes: Estimated based on quoted prices for identical senior secured notes in non-active market. | |
Level 3 Measurements: | |
Term loans: Estimated using a projected discounted cash flow analysis based on unobservable inputs including principal and interest payments and discount rate. A yield rate was estimated using yields rates for publicly traded debt instruments of comparable companies with similar features. See Note 8. | |
Warrants: Estimated using the Binomial Lattice option valuation model. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility. See Notes 8 and 11. | |
Indefinite-lived assets - goodwill: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit, discount rate, working capital requirements, capital expenditures, depreciation and terminal value assumptions. | |
Retail stores: Estimated using a projected discounted cash flow analysis based on unobservable inputs including gross profit and discount rate. The key assumptions used in the estimates of projected cash flows were sales, gross margins, and payroll costs. These forecasts were based on historical trends and take into account recent developments as well as the Company's plans and intentions. | |
Fair Value of Financial Instruments | |
The Company's financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized (gain) loss on change in fair value of warrants in the consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note 2. | |
The following tables present carrying amounts and fair values of the Company's financial instruments as of September 30, 2014 and December 31, 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The Company did not have any assets or liabilities categorized as Level 1 as of September 30, 2014. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Share | |
The Company presents earnings per share ("EPS") utilizing a dual presentation of basic and diluted EPS. Basic EPS excludes dilution and reflects net loss divided by the weighted-average shares of common stock outstanding for the period presented. Diluted EPS includes the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |
The Company had common stock under various options, warrants and other agreements at September 30, 2014 and December 31, 2013. The weighted-average effects of approximately 40,000 and 54,000 shares at September 30, 2014 and 2013, respectively, were excluded from the calculation of net loss per share for both three and nine months ended September 30, 2014 and 2013 because their effect would have been anti-dilutive. | |
Lease, Policy [Policy Text Block] | ' |
Operating Leases | |
The Company conducts retail operations under operating leases that expire at various dates through November 2024. The Company's primary manufacturing facilities and executive offices are currently under a long-term lease that expires on July 31, 2019. The rent expenses (including real estate taxes and common area maintenance costs) were $18,271 and $19,790 for the three months ended September 30, 2014 and 2013, respectively, and $55,611 and $59,154 for the nine months ended September 30, 2014 and 2013, respectively. The Company did not incur any significant contingent rent during these periods. Rent expense is allocated to cost of sales for production-related activities, selling expenses for retail stores, and general and administrative expenses in the consolidated statements of operations. | |
Segment Reporting, Policy [Policy Text Block] | ' |
Business Segment and Geographic Area Information | |
The Company reports the following four operating segments based on the management approach: U.S. Wholesale, U.S. Retail, Canada, and International. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. | |
The U.S. Wholesale segment consists of the Company's wholesale operations of sales of undecorated apparel products to distributors and third party screen printers in the U.S. as well as its online consumer sales in the U.S. The U.S. Retail segment consists of the Company's retail operations in the U.S., which comprised 138 retail stores as of September 30, 2014. The Canada segment includes wholesale, retail and online consumer operations in Canada. As of September 30, 2014, the retail operations in the Canada segment comprised 31 retail stores. The International segment includes wholesale, retail, and online consumer operations outside of the U.S. and Canada. As of September 30, 2014, the retail operations in the International segment comprised 76 retail stores operating in 18 countries outside the U.S. and Canada. All of the Company's retail stores sell its apparel products directly to consumers. | |
The Company evaluates the performance of its operating segments primarily based on net sales and operating income or loss from operations. Operating income or loss for each segment does not include unallocated corporate general and administrative expenses, interest expense and other miscellaneous income/expense items. Corporate general and administrative expenses include, but are not limited to, human resources, legal, finance, information technology, accounting, executive compensation and various other corporate level expenses. | |
Contingent Liability Reserve Estimate, Policy [Policy Text Block] | ' |
Workers' Compensation and Other Self-Insurance Reserves | |
The Company uses a combination of third-party insurance and self-insurance for a number of risks including workers' compensation, medical benefits provided to employees, and general liability claims. General liability primarily relates to litigation that arises from store operations. Self-insurance reserves include estimates of filed claims carried at their expected ultimate settlement value and claims incurred but not yet reported. | |
Estimating liability is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the reserve required. Changes in future inflation rates, litigation trends, legal interpretations, benefit levels, and settlement patterns, among other factors, can impact ultimate claim costs. The Company estimates liability by utilizing loss development factors based on its specific data to project the future development of incurred losses. Loss estimates are adjusted based upon actual claim settlements and reported claims. Although the Company does not expect ultimate claim costs significantly differ from its estimates, self-insurance reserves could be affected if actual developed claims considerably fluctuate from the historical trends and the assumptions applied. | |
The Company's estimated claims are discounted using a rate of 1.54% with a duration that approximates the duration of its self-insurance reserve portfolio. The undiscounted liabilities were $19,619 and $15,809 as of September 30, 2014 and December 31, 2013, respectively. | |
The workers' compensation liability is based on an estimate of losses for claims incurred but not paid at the end of the period. Funding is made directly to the providers and/or claimants by the insurance company. To guarantee performance under the workers' compensation program, the Company issued standby letters of credit of $500 and $450 with insurance companies being the beneficiaries as of September 30, 2014 and December 31, 2013, respectively, and cash deposits of $16,124 in favor of insurance company beneficiaries as of both September 30, 2014 and December 31, 2013. At September 30, 2014, the Company recorded a total reserve of $18,792, of which $5,086 is included in accrued expenses and $13,706 is included in other long-term liabilities on the consolidated balance sheets. At December 31, 2013, the Company recorded a total reserve of $15,356, of which $3,871 is included in accrued expenses and $11,485 is included in other long-term liabilities on the consolidated balance sheets. | |
The Company self-insures its health insurance benefit obligations while the claims are administered through a third party administrator. The medical benefit liability is based on estimated losses for claims incurred but not paid at the end of the period. Funding is made directly to the providers and/or claimants by the insurance company. The Company's total reserve of $1,386 and $2,512 was included in accrued expenses in the consolidated balance sheets at September 30, 2014 and December 31, 2013, respectively. | |
Inventory, Policy [Policy Text Block] | ' |
Inventories consist of material, labor, and overhead, and are stated at the lower of cost or market. Cost is primarily determined on the first-in, first-out (FIFO) method. For the three and nine months ended September 30, 2014 and 2013, no supplier provided more than 10% of the Company's raw material purchases. | |
The Company identifies potentially excess and slow-moving inventories by evaluating turn rates, inventory levels and other factors and records lower of cost or market reserves for such identified excess and slow-moving inventories. The Company had a lower of cost or market reserves for excess and slow-moving inventories of $2,004 and $1,951 at September 30, 2014 and December 31, 2013, respectively. | |
The Company establishes reserves for inventory shrinkage for each of its retail locations and warehouse based on the historical results of physical inventory cycle counts. Inventory shrinkage reserves were $2,470 and $827 as of September 30, 2014 and December 31, 2013, respectively. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The most significant estimates include: inventory valuation and obsolescence; valuation and recoverability of long-lived assets, including the values assigned to goodwill and property and equipment; fair value calculations, including derivative liabilities; contingencies, including accruals for the outcome of current litigation and assessments and self-insurance; income taxes, including uncertain income tax positions and recoverability of deferred income taxes and any limitations as to net operating losses ("NOL"); and cash flow projections in assessing future performance related to financial standards requiring a prospective analysis in valuing and classifying assets and liabilities. Actual results could differ from those estimates. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of its assets and liabilities, and are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company estimates the degree to which tax assets and credit carryforwards will result in a benefit based on expected profitability by tax jurisdiction. A valuation allowance for such tax assets and loss carryforwards is provided when it is determined that such amounts will more likely than not go unrealized. Significant weight is given to evidence that can be objectively verified. The determination to record a valuation allowance is based on the recent history of cumulative losses and current operating performance and includes an assessment of the degree to which any losses are driven by items that are unusual in nature or incurred to improve future profitability. In addition, the Company reviews changes in near-term market conditions and any other factors arising during the period which may impact its future operating results. If it becomes more likely than not that a tax asset will be realized, any related valuation allowance of such assets would be reversed. | |
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. Management believes that adequate provisions have been made for all years, but the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. | |
The Company's foreign domiciled subsidiaries are subject to foreign income taxes on earnings in their respective jurisdictions. The Company elected to have its foreign subsidiaries, except for its subsidiaries in Brazil, Canada, China, Ireland, Italy, South Korea, and Spain, consolidated in the Company's U.S. federal income tax return. The Company is generally eligible to receive tax credits on its U.S. federal income tax return for most of the foreign taxes paid by the Company's subsidiaries included in the U.S. federal income tax return. | |
For financial statement purposes, the Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Once this threshold has been met, the Company's measurement of its expected tax benefits is recognized in its financial statements. Gross unrecognized tax benefits are included in current liabilities in the consolidated balance sheets, and interest and penalties on unrecognized tax benefits are recorded in the income tax provision in the consolidated statements of operations. | |
Income Taxes | |
Income taxes for the three and nine months ended September 30, 2014 and 2013 were computed using an effective tax rate estimated to be applicable for the full fiscal year, which is subject to ongoing review and evaluation by management. | |
The Company incurred losses from operations for the three and nine months ended September 30, 2014 and 2013. Based upon these results and the recent history of cumulative losses for the prior three years, as well as trends in the Company's performance projected through 2014, the Company's management believes that it is more likely than not deferred tax assets in certain jurisdictions are not fully realizable. Accordingly, the Company will not record any income tax benefits in the condensed consolidated financial statements until it is determined that the Company will generate sufficient taxable income in the respective jurisdictions to realize the deferred income tax assets. As a result of the analysis, the Company determined that a full valuation allowance against the net deferred tax assets in certain jurisdictions, primarily in the U.S., and partial valuation allowances in certain foreign jurisdictions, is required. | |
The Internal Revenue Code, Section 382, as amended, imposes annual limitation on the utilization of NOL carryforwards, other tax carryforwards, and certain built-in losses upon an ownership change. The Company performed an analysis determining it was more likely than not that an ownership change had not occurred through December 31, 2013, and accordingly, NOL carryforwards through such date are not subject to an annual Section 382 limitation. On March 31, 2014, the Company completed a public offering of 61,645 shares of its common stock. On June 25, 2014 Standard General entered into an agreement with Mr. Charney to purchase shares of the Company's common stock and then loan Mr. Charney the funds necessary to acquire those shares from Standard General. On June 27, 2014, Standard General sold 27,351 shares of the Company's common stock to Mr. Charney. As of September 30, 2014, the Company has not completed an analysis whether an ownership change occurred under Section 382, which, if it did occur, could substantially limit its ability in the future to utilize its NOLs and other tax carryforwards. | |
The Internal Revenue Service completed its audit on the Company's tax year 2011, and there was no assessment. Tax years that remain subject to audits by the Internal Revenue Service are 2012 through 2013. The Company's state and foreign tax returns are open to audit under similar statute of limitations for the calendar years 2008 through 2013. | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
Accounting Standards Updates | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued a new standard on disclosure of uncertainties about an entity's ability to continue as a going concern. The new standard provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. Additionally, an entity must provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In June 2014, the FASB issued a new standard on accounting for share-based payments. The new standard clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. As such, the performance target should not be reflected in estimating the grant date fair value of the award. The new standard also clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
In May 2014, the FASB issued a new standard on recognizing revenue in contracts with customers. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard creates a five-step process to recognize revenue that requires entities to exercise judgment when considering contract terms and relevant facts and circumstances. The new standard also requires expanded disclosures surrounding revenue recognition. The new standard will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption on the Company's consolidated financial statements. | |
Other recently issued accounting standards are not expected to have a material effect on the Company's consolidated financial statements. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
The components of inventories are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 20,664 | $ | 23,199 | ||||
Work in process | 3,094 | 2,596 | ||||||
Finished goods | 131,676 | 146,361 | ||||||
155,434 | 172,156 | |||||||
Less reserve for inventory shrinkage and obsolescence | (4,474 | ) | (2,778 | ) | ||||
Total, net of reserves | $ | 150,960 | $ | 169,378 | ||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Liabilities and Other Liabilities [Abstract] | ' | |||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | |||||||
The components of accrued expenses and other current liabilities are as follows: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Compensation, bonuses and related taxes | $ | 10,452 | $ | 11,773 | ||||
Accrued interest | 13,106 | 6,064 | ||||||
Workers' compensation and other self-insurance reserves (Note 14) | 6,472 | 6,383 | ||||||
Sales, value and property taxes | 3,068 | 3,868 | ||||||
Gift cards and store credits | 6,651 | 7,391 | ||||||
Loss contingencies | 3,572 | 1,177 | ||||||
Deferred revenue | 703 | 1,258 | ||||||
Deferred rent | 3,492 | 3,363 | ||||||
Other | 13,948 | 8,741 | ||||||
Total accrued expenses and other current liabilities | $ | 61,464 | $ | 50,018 | ||||
Revolving_Credit_Facilities_an1
Revolving Credit Facilities and Current Portion of Long-Term Debt (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Line of Credit Facility [Abstract] | ' | |||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | ' | |||||||||||
The following table presents revolving credit facilities and current portion of long-term debt: | ||||||||||||
Lender | Expiration | September 30, 2014 | December 31, 2013 | |||||||||
Revolving credit facility | Capital One | 14-Apr-18 | $ | 27,047 | $ | 43,526 | ||||||
Revolving credit facility | Bank of Montreal | 31-Mar-14 | 0 | 443 | ||||||||
Current portion of long-term debt | 13 | 73 | ||||||||||
Total | $ | 27,060 | $ | 44,042 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term debt consists of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Senior Secured Notes due 2020 (a) | $ | 206,857 | $ | 203,265 | ||||
Standard General Loan Agreement (b) | 9,034 | 0 | ||||||
Lion Loan Agreement (c) | 0 | 9,865 | ||||||
Other | 282 | 411 | ||||||
Total long-term debt | 216,173 | 213,541 | ||||||
Current portion of debt | (13 | ) | (73 | ) | ||||
Long-term debt, net of current portion | $ | 216,160 | $ | 213,468 | ||||
(a) Includes accrued interest paid in-kind of $6,173 and $3,044 and net of unamortized discount of $5,316 and $5,779 at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(b) Includes accrued interest paid in-kind of $365 and net of unamortized discount of $831 at September 30, 2014. | ||||||||
(c) Includes accrued interest paid in-kind of $365 at December 31, 2013. Assigned to Standard General on July 16, 2014. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | ' | |||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||
Senior Secured Notes due 2020 | Level 2 Liability | $ | 206,857 | $ | 224,540 | |||||||||||
Standard General Loan Agreement | Level 3 Liability | 9,865 | 9,034 | |||||||||||||
Lion Warrant | Level 3 Liability | (a) | 14,704 | |||||||||||||
$ | 216,722 | $ | 248,278 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||
Senior Secured Notes due 2020 | Level 2 Liability | $ | 203,265 | $ | 191,065 | |||||||||||
Lion Loan Agreement | Level 3 Liability | 9,865 | 9,773 | |||||||||||||
Lion Warrant | Level 3 Liability | (a) | 20,954 | |||||||||||||
$ | 213,130 | $ | 221,792 | |||||||||||||
(a) No cost is associated with these liabilities (see Note 11) | ||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] | ' | |||||||||||||||
The following table presents a summary of changes in fair value of the Lion Warrant (Level 3 financial liabilities) which are marked to market on a periodic basis: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 16,489 | $ | 35,388 | $ | 20,954 | $ | 17,241 | ||||||||
Adjustments included in earnings (a) | (1,785 | ) | (12,922 | ) | (6,250 | ) | 5,225 | |||||||||
Balance at September 30, | $ | 14,704 | $ | 22,466 | $ | 14,704 | $ | 22,466 | ||||||||
(a) The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gains or losses are recorded in unrealized (gain) loss on change in fair value of warrants in the consolidated statements of operations. | ||||||||||||||||
At September 30, 2014, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Stockholders_Deficit_Tables
Stockholders' Deficit (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Stockholders' Equity Attributable to Parent [Abstract] | ' | ||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | ' | ||||||||||
The following table presents a summary of common stock warrants activity as of September 30, 2014: | |||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Contractual Life | |||||||||
(in thousands) | (in years) | ||||||||||
Outstanding - January 1, 2014 | 21,606 | $ | 0.75 | 8.2 | |||||||
Issued (a) | 24,511 | $ | 0.66 | 8 | |||||||
Forfeited (a) | (21,606 | ) | $ | 0.75 | 0 | ||||||
Expired | 0 | $ | 0 | 0 | |||||||
Outstanding - September 30, 2014 | 24,511 | $ | 0.66 | 7.5 | |||||||
Fair value - September 30, 2014 | $ | 14,704 | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||
A summary of the potential stock issuances under various options, warrants and other agreements that could have a dilutive effect on the shares outstanding for the nine months ended September 30 are as follows: | |||||||||||
2014 | 2013 | ||||||||||
SOF warrants | 0 | 1,000 | |||||||||
Lion warrants | 24,511 | 21,606 | |||||||||
Shares issuable to Mr. Charney based on market conditions (a) | 13,611 | 20,416 | |||||||||
Contingent shares issuable to Mr. Charney based on market conditions (b) | 0 | 2,112 | |||||||||
Contingent shares issuable to Mr. Charney based on performance conditions (c) | 0 | 5,000 | |||||||||
Employee options and restricted shares | 1,505 | 3,449 | |||||||||
39,627 | 53,583 | ||||||||||
(a) Charney Anti-Dilution Rights pursuant to the April 26, 2011 Investor Purchase Agreement, of which 6,805 expired unexercised on April 15, 2014. | |||||||||||
(b) Pursuant to the March 24, 2011 conversion of debt to equity, which expired unexercised on March 24, 2014. | |||||||||||
(c) Pursuant to Mr. Charney's employment agreement commenced April 1, 2012, of which 5,000 expired unexercised on December 31, 2013. (Note 12). |
SharedBased_Compensation_Table
Shared-Based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||
The following table presents a summary of the restricted share awards activity as of September 30, 2014: | |||||||||||||
Shares | Weighted-Average Grant Date Fair Value Per Share | Weighted-Average Remaining Vesting Period (in years) | |||||||||||
(in thousands) | |||||||||||||
Non-vested - January 1, 2014 | 1,850 | $ | 1.46 | 0.9 | |||||||||
Granted | 988 | $ | 0.72 | ||||||||||
Vested | (1,737 | ) | $ | 1 | |||||||||
Forfeited | (296 | ) | $ | 1.64 | |||||||||
Non-vested - September 30, 2014 | 805 | $ | 1.46 | 0.2 | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
The following table presents a summary of the stock option activity as of September 30, 2014: | |||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Contractual Remaining Life | Aggregate Intrinsic Value (in thousands) | ||||||||||
(in thousands) | (in years) | ||||||||||||
Outstanding - January 1, 2014 | 700 | $ | 0.82 | 7.8 | |||||||||
Granted | 0 | ||||||||||||
Forfeited | 0 | ||||||||||||
Expired | 0 | ||||||||||||
Outstanding - September 30, 2014 | 700 | $ | 0.82 | 7 | $ | 3.5 | |||||||
Vested - September 30, 2014 | 700 | $ | 0.82 | 7 | $ | 3.5 | |||||||
Non-vested - September 30, 2014 | 0 | $ | 0 | ||||||||||
Business_Segment_and_Geographi1
Business Segment and Geographic Area Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||||||
Reconciliation of reportable segments combined income from operations for the three and nine months ended September 30, 2014 and 2013 to the consolidated loss before income taxes is as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Consolidated income from operations of reportable segments | $ | 9,792 | $ | 5,168 | $ | 29,111 | $ | 18,531 | ||||||||||||
Unallocated corporate expenses | (19,871 | ) | (9,661 | ) | (44,106 | ) | (35,415 | ) | ||||||||||||
Interest expense | (9,858 | ) | (10,121 | ) | (29,916 | ) | (29,555 | ) | ||||||||||||
Foreign currency transaction (loss) gain | (616 | ) | 449 | (748 | ) | (422 | ) | |||||||||||||
Unrealized gain (loss) on change in fair value of warrants | 1,785 | 12,922 | 6,250 | (5,225 | ) | |||||||||||||||
Gain (loss) on extinguishment of debt | 171 | 0 | 171 | (32,101 | ) | |||||||||||||||
Other income (expense) | 57 | (58 | ) | 5 | (42 | ) | ||||||||||||||
Consolidated loss before income taxes | $ | (18,540 | ) | $ | (1,301 | ) | $ | (39,233 | ) | $ | (84,229 | ) | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||
The following tables present key financial information of the Company's reportable segments before unallocated corporate expenses: | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
U.S. Wholesale | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale net sales | $ | 41,179 | $ | 0 | $ | 2,699 | $ | 3,007 | $ | 46,885 | ||||||||||
Retail net sales | 0 | 50,277 | 9,957 | 35,588 | 95,822 | |||||||||||||||
Online consumer net sales | 8,797 | 0 | 558 | 3,807 | 13,162 | |||||||||||||||
Total net sales to external customers | 49,976 | 50,277 | 13,214 | 42,402 | 155,869 | |||||||||||||||
Gross profit | 13,761 | 32,722 | 7,343 | 28,713 | 82,539 | |||||||||||||||
Income (loss) from segment operations | 7,178 | 2,235 | 1,316 | (937 | ) | 9,792 | ||||||||||||||
Depreciation and amortization | 2,132 | 2,807 | 414 | 1,051 | 6,404 | |||||||||||||||
Capital expenditures | (24 | ) | 1,024 | 160 | 428 | 1,588 | ||||||||||||||
Retail store impairment | 0 | 581 | 114 | 498 | 1,193 | |||||||||||||||
Deferred rent benefit | (15 | ) | (284 | ) | (56 | ) | (165 | ) | (520 | ) | ||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
U.S. | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale | ||||||||||||||||||||
Wholesale net sales | $ | 41,232 | $ | 0 | $ | 3,044 | $ | 1,725 | $ | 46,001 | ||||||||||
Retail net sales | 0 | 54,303 | 11,321 | 39,278 | 104,902 | |||||||||||||||
Online consumer net sales | 9,129 | 0 | 668 | 3,843 | 13,640 | |||||||||||||||
Total net sales to external customers | 50,361 | 54,303 | 15,033 | 44,846 | 164,543 | |||||||||||||||
Gross profit | 13,390 | 34,755 | 8,477 | 28,018 | 84,640 | |||||||||||||||
Income (loss) from segment operations | 1,407 | (317 | ) | 1,091 | 2,987 | 5,168 | ||||||||||||||
Depreciation and amortization | 1,934 | 3,172 | 507 | 1,125 | 6,738 | |||||||||||||||
Capital expenditures | 1,360 | 2,387 | 540 | 983 | 5,270 | |||||||||||||||
Retail store impairment | 0 | 0 | 145 | 88 | 233 | |||||||||||||||
Deferred rent expense (benefit) | 5 | (338 | ) | (66 | ) | (148 | ) | (547 | ) | |||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
U.S. Wholesale | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale net sales | $ | 128,361 | $ | 0 | $ | 7,434 | $ | 7,007 | $ | 142,802 | ||||||||||
Retail net sales | 0 | 141,712 | 27,137 | 100,800 | 269,649 | |||||||||||||||
Online consumer net sales | 28,606 | 0 | 2,120 | 12,185 | 42,911 | |||||||||||||||
Total net sales to external customers | 156,967 | 141,712 | 36,691 | 119,992 | 455,362 | |||||||||||||||
Gross profit | 47,122 | 91,521 | 20,003 | 78,254 | 236,900 | |||||||||||||||
Income (loss) from segment operations | 26,045 | (560 | ) | 1,912 | 1,714 | 29,111 | ||||||||||||||
Depreciation and amortization | 6,497 | 8,972 | 1,269 | 3,084 | 19,822 | |||||||||||||||
Capital expenditures | 2,133 | 3,496 | 353 | 2,693 | 8,675 | |||||||||||||||
Retail store impairment | 0 | 696 | 114 | 1,111 | 1,921 | |||||||||||||||
Deferred rent benefit | (415 | ) | (2,636 | ) | (155 | ) | (455 | ) | (3,661 | ) | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
U.S. | U.S. Retail | Canada | International | Consolidated | ||||||||||||||||
Wholesale | ||||||||||||||||||||
Wholesale net sales | $ | 119,159 | $ | 0 | $ | 9,236 | $ | 6,297 | $ | 134,692 | ||||||||||
Retail net sales | 0 | 149,811 | 31,664 | 105,629 | 287,104 | |||||||||||||||
Online consumer net sales | 28,365 | 0 | 1,942 | 12,736 | 43,043 | |||||||||||||||
Total net sales to external customers | 147,524 | 149,811 | 42,842 | 124,662 | 464,839 | |||||||||||||||
Gross profit | 40,359 | 97,248 | 25,244 | 78,527 | 241,378 | |||||||||||||||
Income (loss) from segment operations | 12,887 | (2,239 | ) | 1,592 | 6,291 | 18,531 | ||||||||||||||
Depreciation and amortization | 5,327 | 9,231 | 1,388 | 3,209 | 19,155 | |||||||||||||||
Capital expenditures | 5,847 | 9,377 | 970 | 2,713 | 18,907 | |||||||||||||||
Retail store impairment | 0 | 78 | 145 | 88 | 311 | |||||||||||||||
Deferred rent expense (benefit) | 43 | (1,114 | ) | (279 | ) | (317 | ) | (1,667 | ) | |||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||||||||||||||
Net sales by geographic location of customers for the three and nine months ended September 30, 2014 and 2013, are as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
United States | $ | 100,253 | $ | 104,664 | $ | 298,679 | $ | 297,335 | ||||||||||||
Europe (excluding the United Kingdom) | 17,440 | 19,065 | 50,105 | 51,996 | ||||||||||||||||
Canada | 13,214 | 15,033 | 36,691 | 42,842 | ||||||||||||||||
United Kingdom | 11,158 | 11,552 | 31,527 | 31,735 | ||||||||||||||||
South Korea | 4,287 | 2,987 | 9,867 | 8,093 | ||||||||||||||||
Japan | 3,203 | 4,977 | 10,266 | 14,421 | ||||||||||||||||
Australia | 2,306 | 2,367 | 6,891 | 7,575 | ||||||||||||||||
China | 2,262 | 1,950 | 6,002 | 5,526 | ||||||||||||||||
Other foreign countries | 1,746 | 1,948 | 5,334 | 5,316 | ||||||||||||||||
Total consolidated net sales | $ | 155,869 | $ | 164,543 | $ | 455,362 | $ | 464,839 | ||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Condensed Balance Sheet [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
Trade accounts receivable, net | 0 | 21,346 | 5,430 | 0 | 26,776 | |||||||||||||||
Intercompany accounts receivable, net | 256,164 | (240,669 | ) | (15,495 | ) | 0 | 0 | |||||||||||||
Inventories, net | 0 | 117,144 | 33,746 | 70 | 150,960 | |||||||||||||||
Other current assets | 376 | 12,429 | 3,990 | 0 | 16,795 | |||||||||||||||
Total current assets | 256,540 | (88,674 | ) | 35,984 | 70 | 203,920 | ||||||||||||||
Property and equipment, net | 0 | 42,732 | 12,559 | 0 | 55,291 | |||||||||||||||
Investments in subsidiaries | (105,031 | ) | 17,396 | 0 | 87,635 | 0 | ||||||||||||||
Other assets, net | 9,251 | 28,760 | 9,967 | 0 | 47,978 | |||||||||||||||
TOTAL ASSETS | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Revolving credit facilities and current portion of long-term debt | $ | 0 | $ | 27,047 | $ | 13 | $ | 0 | $ | 27,060 | ||||||||||
Accounts payable | 0 | 30,951 | 2,917 | 0 | 33,868 | |||||||||||||||
Accrued expenses and other current liabilities | 17,756 | 30,455 | 13,253 | 0 | 61,464 | |||||||||||||||
Fair value of warrant liability | 14,704 | 0 | 0 | 0 | 14,704 | |||||||||||||||
Other current liabilities | 0 | 8,190 | 2,244 | 0 | 10,434 | |||||||||||||||
Total current liabilities | 32,460 | 96,643 | 18,427 | 0 | 147,530 | |||||||||||||||
Long-term debt, net | 215,891 | 0 | 269 | 0 | 216,160 | |||||||||||||||
Other long-term liabilities | 0 | 26,037 | 5,053 | 0 | 31,090 | |||||||||||||||
TOTAL LIABILITIES | 248,351 | 122,680 | 23,749 | 0 | 394,780 | |||||||||||||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
Common stock | 18 | 100 | 492 | (592 | ) | 18 | ||||||||||||||
Additional paid-in capital | 217,650 | 6,726 | 7,869 | (14,595 | ) | 217,650 | ||||||||||||||
Accumulated other comprehensive (loss) income | (5,823 | ) | (1,682 | ) | (2,559 | ) | 4,241 | (5,823 | ) | |||||||||||
(Accumulated deficit) retained earnings | (297,279 | ) | (127,610 | ) | 28,959 | 98,651 | (297,279 | ) | ||||||||||||
Less: Treasury stock | (2,157 | ) | 0 | 0 | 0 | (2,157 | ) | |||||||||||||
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (87,591 | ) | (122,466 | ) | 34,761 | 87,705 | (87,591 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash | $ | 0 | $ | 512 | $ | 8,164 | $ | 0 | $ | 8,676 | ||||||||||
Trade accounts receivable, net | 0 | 15,109 | 5,592 | 0 | 20,701 | |||||||||||||||
Intercompany accounts receivable, net | 247,414 | (224,181 | ) | (23,233 | ) | 0 | 0 | |||||||||||||
Inventories, net | 0 | 129,716 | 39,736 | (74 | ) | 169,378 | ||||||||||||||
Other current assets | 97 | 10,442 | 6,002 | 0 | 16,541 | |||||||||||||||
Total current assets | 247,511 | (68,402 | ) | 36,261 | (74 | ) | 215,296 | |||||||||||||
Property and equipment, net | 0 | 53,424 | 15,879 | 0 | 69,303 | |||||||||||||||
Investments in subsidiaries | (94,161 | ) | 18,158 | 0 | 76,003 | 0 | ||||||||||||||
Other assets, net | 9,282 | 27,934 | 11,937 | 0 | 49,153 | |||||||||||||||
TOTAL ASSETS | $ | 162,632 | $ | 31,114 | $ | 64,077 | $ | 75,929 | $ | 333,752 | ||||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Revolving credit facilities and current portion of long-term debt | $ | 0 | $ | 43,586 | $ | 456 | $ | 0 | $ | 44,042 | ||||||||||
Accounts payable | 0 | 34,738 | 3,552 | 0 | 38,290 | |||||||||||||||
Accrued expenses and other current liabilities | 5,952 | 28,344 | 15,722 | 0 | 50,018 | |||||||||||||||
Fair value of warrant liability | 20,954 | 0 | 0 | 0 | 20,954 | |||||||||||||||
Other current liabilities | 0 | 6,830 | 1,855 | 0 | 8,685 | |||||||||||||||
Total current liabilities | 26,906 | 113,498 | 21,585 | 0 | 161,989 | |||||||||||||||
Long-term debt, net | 213,130 | 47 | 291 | 0 | 213,468 | |||||||||||||||
Other long-term liabilities | 0 | 29,711 | 5,988 | 0 | 35,699 | |||||||||||||||
TOTAL LIABILITIES | 240,036 | 143,256 | 27,864 | 0 | 411,156 | |||||||||||||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
Common stock | 11 | 100 | 492 | (592 | ) | 11 | ||||||||||||||
Additional paid-in capital | 185,472 | 6,726 | 7,685 | (14,411 | ) | 185,472 | ||||||||||||||
Accumulated other comprehensive (loss) income | (4,306 | ) | (543 | ) | (671 | ) | 1,214 | (4,306 | ) | |||||||||||
(Accumulated deficit) retained earnings | (256,424 | ) | (118,425 | ) | 28,707 | 89,718 | (256,424 | ) | ||||||||||||
Less: Treasury stock | (2,157 | ) | 0 | 0 | 0 | (2,157 | ) | |||||||||||||
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (77,404 | ) | (112,142 | ) | 36,213 | 75,929 | (77,404 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 162,632 | $ | 31,114 | $ | 64,077 | $ | 75,929 | $ | 333,752 | ||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
Trade accounts receivable, net | 0 | 21,346 | 5,430 | 0 | 26,776 | |||||||||||||||
Intercompany accounts receivable, net | 256,164 | (240,669 | ) | (15,495 | ) | 0 | 0 | |||||||||||||
Inventories, net | 0 | 117,144 | 33,746 | 70 | 150,960 | |||||||||||||||
Other current assets | 376 | 12,429 | 3,990 | 0 | 16,795 | |||||||||||||||
Total current assets | 256,540 | (88,674 | ) | 35,984 | 70 | 203,920 | ||||||||||||||
Property and equipment, net | 0 | 42,732 | 12,559 | 0 | 55,291 | |||||||||||||||
Investments in subsidiaries | (105,031 | ) | 17,396 | 0 | 87,635 | 0 | ||||||||||||||
Other assets, net | 9,251 | 28,760 | 9,967 | 0 | 47,978 | |||||||||||||||
TOTAL ASSETS | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Revolving credit facilities and current portion of long-term debt | $ | 0 | $ | 27,047 | $ | 13 | $ | 0 | $ | 27,060 | ||||||||||
Accounts payable | 0 | 30,951 | 2,917 | 0 | 33,868 | |||||||||||||||
Accrued expenses and other current liabilities | 17,756 | 30,455 | 13,253 | 0 | 61,464 | |||||||||||||||
Fair value of warrant liability | 14,704 | 0 | 0 | 0 | 14,704 | |||||||||||||||
Other current liabilities | 0 | 8,190 | 2,244 | 0 | 10,434 | |||||||||||||||
Total current liabilities | 32,460 | 96,643 | 18,427 | 0 | 147,530 | |||||||||||||||
Long-term debt, net | 215,891 | 0 | 269 | 0 | 216,160 | |||||||||||||||
Other long-term liabilities | 0 | 26,037 | 5,053 | 0 | 31,090 | |||||||||||||||
TOTAL LIABILITIES | 248,351 | 122,680 | 23,749 | 0 | 394,780 | |||||||||||||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||||||||||
Common stock | 18 | 100 | 492 | (592 | ) | 18 | ||||||||||||||
Additional paid-in capital | 217,650 | 6,726 | 7,869 | (14,595 | ) | 217,650 | ||||||||||||||
Accumulated other comprehensive (loss) income | (5,823 | ) | (1,682 | ) | (2,559 | ) | 4,241 | (5,823 | ) | |||||||||||
(Accumulated deficit) retained earnings | (297,279 | ) | (127,610 | ) | 28,959 | 98,651 | (297,279 | ) | ||||||||||||
Less: Treasury stock | (2,157 | ) | 0 | 0 | 0 | (2,157 | ) | |||||||||||||
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (87,591 | ) | (122,466 | ) | 34,761 | 87,705 | (87,591 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 160,760 | $ | 214 | $ | 58,510 | $ | 87,705 | $ | 307,189 | ||||||||||
Schedule of Condensed Income Statement [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 121,352 | $ | 60,015 | $ | (16,824 | ) | $ | 164,543 | |||||||||
Cost of sales | 0 | 71,878 | 24,876 | (16,851 | ) | 79,903 | ||||||||||||||
Gross profit | 0 | 49,474 | 35,139 | 27 | 84,640 | |||||||||||||||
Selling and distribution expenses | 0 | 39,747 | 24,235 | 0 | 63,982 | |||||||||||||||
General and administrative expenses | (195 | ) | 14,959 | 10,140 | 14 | 24,918 | ||||||||||||||
Retail store impairment | 0 | 0 | 233 | 0 | 233 | |||||||||||||||
Income (loss) from operations | 195 | (5,232 | ) | 531 | 13 | (4,493 | ) | |||||||||||||
Interest expense and other expense | (3,521 | ) | 169 | 160 | 0 | (3,192 | ) | |||||||||||||
Equity in loss (earnings) of subsidiaries | 5,229 | (833 | ) | 0 | (4,396 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (1,513 | ) | (4,568 | ) | 371 | 4,409 | (1,301 | ) | ||||||||||||
Income tax provisions | 0 | 0 | 212 | 0 | 212 | |||||||||||||||
Net (loss) income | $ | (1,513 | ) | $ | (4,568 | ) | $ | 159 | $ | 4,409 | $ | (1,513 | ) | |||||||
Other comprehensive income (loss), net of tax | 1,445 | 1,066 | 1,411 | (2,477 | ) | 1,445 | ||||||||||||||
Comprehensive (loss) income | $ | (68 | ) | $ | (3,502 | ) | $ | 1,570 | $ | 1,932 | $ | (68 | ) | |||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 110,401 | $ | 55,621 | $ | (10,153 | ) | $ | 155,869 | |||||||||
Cost of sales | 0 | 67,669 | 15,550 | (9,889 | ) | 73,330 | ||||||||||||||
Gross profit | 0 | 42,732 | 40,071 | (264 | ) | 82,539 | ||||||||||||||
Selling and distribution expenses | 0 | 30,202 | 22,438 | 0 | 52,640 | |||||||||||||||
General and administrative expenses | 10,101 | 12,274 | 16,401 | 9 | 38,785 | |||||||||||||||
Retail store impairment | 0 | 580 | 613 | 0 | 1,193 | |||||||||||||||
(Loss) income from operations | (10,101 | ) | (324 | ) | 619 | (273 | ) | (10,079 | ) | |||||||||||
Interest expense and other expense | 7,236 | 1,220 | 5 | 0 | 8,461 | |||||||||||||||
Equity in loss (earnings) of subsidiaries | 1,847 | 53 | 0 | (1,900 | ) | 0 | ||||||||||||||
(Loss) income before income taxes | (19,184 | ) | (1,597 | ) | 614 | 1,627 | (18,540 | ) | ||||||||||||
Income tax provision | 0 | 109 | 535 | 0 | 644 | |||||||||||||||
Net (loss) income | $ | (19,184 | ) | $ | (1,706 | ) | $ | 79 | $ | 1,627 | $ | (19,184 | ) | |||||||
Other comprehensive (loss) income, net of tax | (1,919 | ) | (1,479 | ) | (2,269 | ) | 3,748 | (1,919 | ) | |||||||||||
Comprehensive (loss) income | $ | (21,103 | ) | $ | (3,185 | ) | $ | (2,190 | ) | $ | 5,375 | $ | (21,103 | ) | ||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 335,104 | $ | 169,000 | $ | (39,265 | ) | $ | 464,839 | |||||||||
Cost of sales | 0 | 200,155 | 63,680 | (40,374 | ) | 223,461 | ||||||||||||||
Gross profit | 0 | 134,949 | 105,320 | 1,109 | 241,378 | |||||||||||||||
Selling and distribution expenses | 0 | 105,488 | 71,747 | 0 | 177,235 | |||||||||||||||
General and administrative expenses | 311 | 50,638 | 29,757 | 10 | 80,716 | |||||||||||||||
Retail store impairment | 0 | 78 | 233 | 0 | 311 | |||||||||||||||
(Loss) income from operations | (311 | ) | (21,255 | ) | 3,583 | 1,099 | (16,884 | ) | ||||||||||||
Interest expense and other expense | 56,764 | 10,195 | 386 | 0 | 67,345 | |||||||||||||||
Equity in loss (earnings) of subsidiaries | 28,453 | (2,424 | ) | 0 | (26,029 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (85,528 | ) | (29,026 | ) | 3,197 | 27,128 | (84,229 | ) | ||||||||||||
Income tax (benefit) provisions | 0 | (43 | ) | 1,342 | 0 | 1,299 | ||||||||||||||
Net (loss) income | $ | (85,528 | ) | $ | (28,983 | ) | $ | 1,855 | $ | 27,128 | $ | (85,528 | ) | |||||||
Other comprehensive (loss) income, net of tax | (785 | ) | (282 | ) | (847 | ) | 1,129 | (785 | ) | |||||||||||
Comprehensive (loss) income | $ | (86,313 | ) | $ | (29,265 | ) | $ | 1,008 | $ | 28,257 | $ | (86,313 | ) | |||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 333,156 | $ | 156,683 | $ | (34,477 | ) | $ | 455,362 | |||||||||
Cost of sales | 0 | 199,593 | 53,131 | (34,262 | ) | 218,462 | ||||||||||||||
Gross profit | 0 | 133,563 | 103,552 | (215 | ) | 236,900 | ||||||||||||||
Selling and distribution expenses | 0 | 91,851 | 67,294 | 0 | 159,145 | |||||||||||||||
General and administrative expenses | 10,986 | 46,476 | 33,367 | 0 | 90,829 | |||||||||||||||
Retail store impairment | 0 | 695 | 1,226 | 0 | 1,921 | |||||||||||||||
(Loss) income from operations | (10,986 | ) | (5,459 | ) | 1,665 | (215 | ) | (14,995 | ) | |||||||||||
Interest expense and other expense | 20,518 | 3,774 | (54 | ) | 0 | 24,238 | ||||||||||||||
Equity in loss (earnings) of subsidiaries | 9,351 | (200 | ) | 0 | (9,151 | ) | 0 | |||||||||||||
(Loss) income before income taxes | (40,855 | ) | (9,033 | ) | 1,719 | 8,936 | (39,233 | ) | ||||||||||||
Income tax provision | 0 | 154 | 1,468 | 0 | 1,622 | |||||||||||||||
Net (loss) income | $ | (40,855 | ) | $ | (9,187 | ) | $ | 251 | $ | 8,936 | $ | (40,855 | ) | |||||||
Other comprehensive (loss) income, net of tax | (1,517 | ) | (1,139 | ) | (1,888 | ) | 3,027 | (1,517 | ) | |||||||||||
Comprehensive (loss) income | $ | (42,372 | ) | $ | (10,326 | ) | $ | (1,637 | ) | $ | 11,963 | $ | (42,372 | ) | ||||||
Schedule of Condensed Cash Flow Statement [Table Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 9,600 | $ | (18,005 | ) | $ | 11,712 | $ | 0 | $ | 3,307 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | 0 | (5,629 | ) | (3,046 | ) | 0 | (8,675 | ) | ||||||||||||
Proceeds from sale of fixed assets | 0 | 0 | 52 | 0 | 52 | |||||||||||||||
Restricted cash | 0 | 0 | 219 | 0 | 219 | |||||||||||||||
Net cash used in investing activities | 0 | (5,629 | ) | (2,775 | ) | 0 | (8,404 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Cash overdraft | 0 | (102 | ) | 0 | 0 | (102 | ) | |||||||||||||
Repayments under revolving credit facilities, net | 0 | (16,532 | ) | (433 | ) | 0 | (16,965 | ) | ||||||||||||
Repayments of term loans and notes payable | 0 | (47 | ) | (10 | ) | 0 | (57 | ) | ||||||||||||
Payments of debt issuance costs | (1,745 | ) | (354 | ) | 0 | 0 | (2,099 | ) | ||||||||||||
Net proceeds from issuance of common stock | 28,446 | 0 | 0 | 0 | 28,446 | |||||||||||||||
Payment of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | (414 | ) | 0 | 0 | 0 | (414 | ) | |||||||||||||
Repayments of capital lease obligations | 0 | (1,885 | ) | (47 | ) | 0 | (1,932 | ) | ||||||||||||
Advances to/from affiliates | (35,887 | ) | 43,118 | (7,231 | ) | 0 | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (9,600 | ) | 24,198 | (7,721 | ) | 0 | 6,877 | |||||||||||||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 0 | 0 | (1,067 | ) | 0 | (1,067 | ) | |||||||||||||
NET INCREASE IN CASH | 0 | 564 | 149 | 0 | 713 | |||||||||||||||
Cash, beginning of period | 0 | 512 | 8,164 | 0 | 8,676 | |||||||||||||||
Cash, end of period | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Property and equipment acquired, and included in accounts payable | $ | 0 | $ | 217 | $ | 254 | $ | 0 | $ | 471 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 9,600 | $ | (18,005 | ) | $ | 11,712 | $ | 0 | $ | 3,307 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | 0 | (5,629 | ) | (3,046 | ) | 0 | (8,675 | ) | ||||||||||||
Proceeds from sale of fixed assets | 0 | 0 | 52 | 0 | 52 | |||||||||||||||
Restricted cash | 0 | 0 | 219 | 0 | 219 | |||||||||||||||
Net cash used in investing activities | 0 | (5,629 | ) | (2,775 | ) | 0 | (8,404 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Cash overdraft | 0 | (102 | ) | 0 | 0 | (102 | ) | |||||||||||||
Repayments under revolving credit facilities, net | 0 | (16,532 | ) | (433 | ) | 0 | (16,965 | ) | ||||||||||||
Repayments of term loans and notes payable | 0 | (47 | ) | (10 | ) | 0 | (57 | ) | ||||||||||||
Payments of debt issuance costs | (1,745 | ) | (354 | ) | 0 | 0 | (2,099 | ) | ||||||||||||
Net proceeds from issuance of common stock | 28,446 | 0 | 0 | 0 | 28,446 | |||||||||||||||
Payment of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | (414 | ) | 0 | 0 | 0 | (414 | ) | |||||||||||||
Repayments of capital lease obligations | 0 | (1,885 | ) | (47 | ) | 0 | (1,932 | ) | ||||||||||||
Advances to/from affiliates | (35,887 | ) | 43,118 | (7,231 | ) | 0 | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (9,600 | ) | 24,198 | (7,721 | ) | 0 | 6,877 | |||||||||||||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 0 | 0 | (1,067 | ) | 0 | (1,067 | ) | |||||||||||||
NET INCREASE IN CASH | 0 | 564 | 149 | 0 | 713 | |||||||||||||||
Cash, beginning of period | 0 | 512 | 8,164 | 0 | 8,676 | |||||||||||||||
Cash, end of period | $ | 0 | $ | 1,076 | $ | 8,313 | $ | 0 | $ | 9,389 | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Property and equipment acquired, and included in accounts payable | $ | 0 | $ | 217 | $ | 254 | $ | 0 | $ | 471 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Elimination Entries | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 977 | $ | (25,732 | ) | $ | 15,951 | $ | 0 | $ | (8,804 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
Capital expenditures | 0 | (15,223 | ) | (3,684 | ) | 0 | (18,907 | ) | ||||||||||||
Proceeds from sale of fixed assets | 0 | (14 | ) | 44 | 0 | 30 | ||||||||||||||
Restricted cash | 0 | 3,265 | (1,671 | ) | 0 | 1,594 | ||||||||||||||
Net cash used in investing activities | 0 | (11,972 | ) | (5,311 | ) | 0 | (17,283 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
Cash overdraft | 0 | 2,812 | 0 | 0 | 2,812 | |||||||||||||||
Repayments of expired revolving credit facilities, net | 0 | (28,513 | ) | 0 | 0 | (28,513 | ) | |||||||||||||
Borrowings (repayments) under current revolving credit facilities, net | 0 | 32,878 | (4,165 | ) | 0 | 28,713 | ||||||||||||||
Borrowings (repayments) of term loans and notes payable | 4,500 | (29,953 | ) | (10 | ) | 0 | (25,463 | ) | ||||||||||||
Repayment of Lion term loan | (144,149 | ) | 0 | 0 | 0 | (144,149 | ) | |||||||||||||
Issuance of Senior Secured Notes | 199,820 | 0 | 0 | 0 | 199,820 | |||||||||||||||
Payment of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | (2,133 | ) | 0 | 0 | 0 | (2,133 | ) | |||||||||||||
Payments of debt issuance costs | (11,237 | ) | (643 | ) | 0 | 0 | (11,880 | ) | ||||||||||||
Repayments of capital lease obligations | 0 | (739 | ) | (34 | ) | 0 | (773 | ) | ||||||||||||
Advances to/from affiliates | (47,778 | ) | 58,601 | (10,823 | ) | 0 | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (977 | ) | 34,443 | (15,032 | ) | 0 | 18,434 | |||||||||||||
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 0 | 0 | (287 | ) | 0 | (287 | ) | |||||||||||||
NET DECREASE IN CASH | 0 | (3,261 | ) | (4,679 | ) | 0 | (7,940 | ) | ||||||||||||
Cash, beginning of period | 0 | 3,796 | 9,057 | 0 | 12,853 | |||||||||||||||
Cash, end of period | $ | 0 | $ | 535 | $ | 4,378 | $ | 0 | $ | 4,913 | ||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||
Property and equipment acquired, and included in accounts payable | $ | 0 | $ | 4,682 | $ | 588 | $ | 0 | $ | 5,270 | ||||||||||
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 14, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Oct. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
non-employee | non-employee | North America [Member] | Standard General Loan Agreement [Member] [Member] | Senior Notes [Member] | Senior Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Cost of Sales [Member] | General and Administrative Expense [Member] | Capital One Credit Agreement [Member] | Capital One Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Prime Rate [Member] | ||||
stores | stores | countries | Rate | Senior Notes [Member] | Capital One Credit Agreement [Member] | Capital One Credit Agreement [Member] | |||||||||||
Rate | Rate | ||||||||||||||||
Number of Stores | 245 | 245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Countries in which Entity Operates | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recent Developments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | ' | ' | ' | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Directors Resigned | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Directors Appointed | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Directors Appointed, Standard General Designated | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Directors Appointed by Standard General and American Apparel, Inc. | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Imports, amount, Germany | $5,409 | $5,409 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual, Payments | 4,390 | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Loss in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83 | 5,326 | ' | ' | ' | ' |
Liquidity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 9,389 | 9,389 | 4,913 | 8,676 | 12,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,047 | 43,526 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 20,398 | 20,398 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,398 | ' | ' | ' |
Interest Paid | ' | 17,852 | 5,726 | ' | ' | ' | ' | 13,390 | 13,666 | ' | 13,666 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 4.00% |
Line of credit facility, covenants, fixed charge coverage ratio, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Line of credit facility, covenants, EBITDA threshold, Minimum | $23,406 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Rate | Rate | |
Concentration Risk [Line Items] | ' | ' |
Sale of Stock, Percentage of Ownership after Transaction | 100.00% | ' |
Deposits, Foreign | 7,932,000 | 7,374,000 |
Number of customers | 1 | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | ' |
Customer Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 17.60% | 14.20% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Subsidiary (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Rate | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Sale of Stock, Percentage of Ownership after Transaction | 100.00% |
Inventories_Narrative_Details
Inventories Narrative (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Rate | ||
number_of_suppliers | ||
Suppliers [Abstract] | ' | ' |
Concentration Risk Suppliers Number of | 0 | ' |
Concentration Risk Percentage of Raw Material Purchases from Suppliers | 10.00% | ' |
Lower of cost or market reserve for excess and slow-moving inventory | $2,004 | $1,951 |
Reserve for inventory shrinkage | $2,470 | $827 |
Inventories_Components_of_Inve
Inventories Components of Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory, Raw Materials, Gross | $20,664 | $23,199 |
Inventory, Work in Process, Gross | 3,094 | 2,596 |
Inventory, Finished Goods, Gross | 131,676 | 146,361 |
Inventory, Gross | 155,434 | 172,156 |
Inventory Valuation Reserves | -4,474 | -2,778 |
Inventories, net | $150,960 | $169,378 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation, Depletion and Amortization | $6,404 | $6,738 | $19,822 | $19,155 |
Asset Impairment Charges | $1,193 | $233 | $1,921 | $311 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (Accrued Liabilities [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Member] | ' | ' |
Accrued expenses and other current liabilitie [Line Items] | ' | ' |
Compensation, bonuses and related taxes | $10,452 | $11,773 |
Accrued interest | 13,106 | 6,064 |
Workers' compensation and other self-insurance reserves (Note 14) | 6,472 | 6,383 |
Sales, value and property taxes | 3,068 | 3,868 |
Gift cards and store credits | 6,651 | 7,391 |
Loss contingencies | 3,572 | 1,177 |
Deferred revenue | 703 | 1,258 |
Deferred rent | 3,492 | 3,363 |
Other | 13,948 | 8,741 |
Total accrued expenses | $61,464 | $50,018 |
Revolving_Credit_Facilities_an2
Revolving Credit Facilities and Current Portion of Long-Term Debt Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Rate | Capital One Credit Agreement [Member] | Capital One Credit Agreement [Member] | Prime Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Capital One Credit Agreement [Member] | Capital One Credit Agreement [Member] | |||||||
Rate | Rate | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense | $9,858 | $10,121 | $29,916 | $29,555 | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | 4.00% | 5.00% |
Line of credit facility, covenants, fixed charge coverage ratio, Minimum | ' | ' | ' | ' | ' | 1 | ' | ' |
Line of credit facility, covenants, EBITDA threshold, Minimum | 23,406 | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | 1,280 | ' | 1,280 | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | 43,526 | 27,047 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | 50,000 | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 20,398 | ' | 20,398 | ' | ' | 20,398 | ' | ' |
Line of credit facility, minimum excess availability threshold covenant | ' | ' | ' | ' | $15,000 | ' | ' | ' |
Sale of Stock, Percentage of Ownership after Transaction | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Revolving_Credit_Facilities_an3
Revolving Credit Facilities and Current Portion of Long-Term Debt Revolving credit facilities and current portion of long-term debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ' | ' |
Short-term Debt | $27,060 | $44,042 |
Capital One Credit Agreement [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit facility, covenants, fixed charge coverage ratio, Minimum | 1 | ' |
Line of Credit Facility, Amount Outstanding | 27,047 | 43,526 |
Bank of Montreal Credit Agreement [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Amount Outstanding | 0 | 443 |
Short-term Debt [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Long-term Debt, Current Maturities | 13 | 73 |
Lion Credit Agreement [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Long-term debt, net carrying amount | 0 | 9,865 |
Standard General Loan Agreement [Member] [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Long-term debt, net carrying amount | $9,034 | $0 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 14, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 15, 2014 | Jun. 30, 2015 |
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Short-term Debt [Member] | Short-term Debt [Member] | Other Debt Obligations [Member] | Other Debt Obligations [Member] | Standard General Loan Agreement [Member] [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | ||||||
Rate | Rate | Rate | Standard General Loan Agreement [Member] [Member] | Standard General Loan Agreement [Member] [Member] | Lion Credit Agreement [Member] | Lion Credit Agreement [Member] | Standard General [Member] | Lion Credit Agreement 2013 [Member] [Domain] | Standard General Loan Agreement [Member] [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price2, percent | ' | ' | ' | ' | ' | ' | 101.00% | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount subject to redemption1, percent | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Interest Paid In Kind | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $365 | $0 | $6,173 | $3,044 | ' | ' |
Other Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 282 | 411 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | 216,173 | 213,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,865 | ' | ' | ' | ' |
Long-term Debt, Current Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Excluding Current Maturities | 216,160 | ' | 216,160 | ' | 213,468 | ' | ' | ' | 216,160 | 213,468 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | 6,148 | ' | 6,148 | ' | 5,779 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 831 | ' | ' | 5,316 | 5,779 | ' | ' |
Interest Paid | ' | ' | 17,852 | 5,726 | ' | 13,390 | 13,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,666 | 13,900 |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | 206,000 | 206,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | ' | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, net carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 206,857 | 203,265 | ' | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption Premium | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount subject to redemption, percent | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price1, percent | ' | ' | ' | ' | ' | ' | 113.00% | 113.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price, percent | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, net carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,034 | 0 | 0 | 9,865 | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on extinguishment of debt | 171 | 0 | 171 | -32,101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | $6,148,000 | ' | $5,779,000 | ' | ' | ' |
Warrant, fair value | 14,704,000 | ' | 20,954,000 | ' | ' | ' |
Warrant [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 14,704,000 | 16,489,000 | 20,954,000 | 22,466,000 | 35,388,000 | 17,241,000 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Liability (levels 2 & 3), carrying amount | 216,722,000 | ' | 213,130,000 | ' | ' | ' |
Financial Liabilities Fair Value Disclosure | 248,278,000 | ' | 221,792 | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Senior Notes [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | 5,316,000 | ' | 5,779,000 | ' | ' | ' |
Accrued Interest Paid In Kind | 6,173,000 | ' | 3,044,000 | ' | ' | ' |
Long-term debt, net carrying amount | 206,857,000 | ' | 203,265,000 | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Long-term debt, net carrying amount | 224,540,000 | ' | 191,065,000 | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Standard General Loan Agreement [Member] [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Accrued Interest Paid In Kind | 0 | ' | ' | ' | ' | ' |
Long-term Debt | 9,865,000 | ' | ' | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Lion Credit Agreement 2013 [Member] [Domain] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Accrued Interest Paid In Kind | ' | ' | 365,000 | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Standard General Loan Agreement [Member] [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Long-term Debt | 9,034,000 | ' | ' | ' | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Lion Credit Agreement 2013 [Member] [Domain] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Long-Term Debt including current maturities, accrued interest paid-in-kind, net of unamortized discount 2013 | ' | ' | 9,773,000 | ' | ' | ' |
Lion Credit Agreement [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Liabilities[Line Items] | ' | ' | ' | ' | ' | ' |
Long-term debt, net carrying amount | $0 | ' | $9,865,000 | ' | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments FV Measurements of Liabilities Using Significant Unobservable Inputs on a Recurring Basis (Details) (Warrant [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Warrant [Member] | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value, end of period | $16,489 | $35,388 | $20,954 | $17,241 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | -1,785 | -12,922 | -6,250 | 5,225 |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $14,704 | $22,466 | $14,704 | $22,466 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ' | ' |
Stock Issued During Period, Shares, New Issues | 61,645 | ' |
Shares sold by Standard General to Dov Charney | ' | 27,351 |
Related_Party_Transaction_Deta
Related Party Transaction (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Rate | Beneficial Owner [Member] | Immediate Family Member of Management or Principal Owner [Member] | Immediate Family Member of Management or Principal Owner [Member] | Immediate Family Member of Management or Principal Owner [Member] | Immediate Family Member of Management or Principal Owner [Member] | Executive Officer [Member] | Dov Charney [Member] | Standard General Charney Loan [Member] | Standard General [Member] | ||||
number_of_property_leases | Rate | Rate | Rate | ||||||||||
Rate | |||||||||||||
number_of_suppliers | |||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property Subject to or Available for Operating Lease, Number of Units | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Obligation, Due after Fifth Year | ' | ' | ' | ' | $9,447,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Obligation | ' | ' | ' | ' | 1,970,000 | ' | ' | ' | ' | ' | ' | ' | ' |
number of vendors | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, Percent of Net Assets | ' | ' | ' | ' | 42.70% | ' | ' | ' | ' | 6.25% | 18.75% | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 155,000 | 466,000 | 465,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | ' | ' | ' | ' | ' | 0 | 26,000 | 71,000 | 160,000 | ' | ' | ' | ' |
Investment Owned, Balance, Shares | ' | ' | ' | ' | 47,209 | ' | ' | ' | ' | ' | ' | ' | 27,351 |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.72 | ' |
Related Party Transaction, Rate | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' |
Payments of Debt Extinguishment Costs | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | 32,072 | 32,072 | ' | 21,606 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Deficit_Public_Of
Stockholders' Deficit Public Offering Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Public offering [Abstract] | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 61,645 | ' | ' |
Shares Issued, Price Per Share | $0.50 | $0.50 | ' |
Net proceeds from issuance of common stock | ' | $28,446 | $0 |
Stockholders_Deficit_Common_St
Stockholders' Deficit Common Stock Warrants Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2012 |
Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | |||||
Rate | ||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 39,627 | 53,583 | ' | 24,511 | ' | ' | ' |
Fair Value Assumptions, Exercise Price | ' | ' | ' | ' | ' | ' | $0.66 | ' |
Stock Issued During Period, Shares, New Issues | 61,645 | ' | ' | ' | ' | 2,905 | ' | ' |
Class of warrant or right, exercise price of warrant or right | $0.66 | $0.66 | ' | $0.75 | ' | ' | ' | $0.75 |
Class of Warrant or Right, Outstanding | 32,072 | 32,072 | ' | 21,606 | ' | ' | ' | ' |
Warrants Outstanding | $14,704 | $14,704 | ' | $20,954 | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | $0.82 | ' |
Fair Value Assumptions, Weighted Average Volatility Rate | ' | ' | ' | ' | ' | ' | 71.69% | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | 2.27% | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | '7 years 5 months 25 days | ' |
Fair Value Assumptions, Expected Dividend Payments | ' | ' | ' | ' | ' | ' | $0 | ' |
Stockholders_Deficit_Common_St1
Stockholders' Deficit Common Stock Warrants issued, forfeited, expired and outstanding (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2012 |
Warrant [Member] | |||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' |
Warrants Outstanding | $14,704 | $14,704 | ' | $20,954 | ' |
Class of Warrant or Right, Outstanding, Weighted Average Remaining Contractual Term | '7 years 6 months | ' | ' | '8 years 2 months | ' |
Class of Warrant or Right, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | 32,072 | 32,072 | ' | 21,606 | ' |
Class of Warrant or Right, Issued | ' | 24,511 | ' | ' | ' |
Class of Warrant or Right, Forfeitures | ' | -21,606 | ' | ' | ' |
Class of Warrant or Right, Expired | ' | 0 | ' | ' | ' |
Class of warrant or right, exercise price of warrant or right | $0.66 | $0.66 | ' | $0.75 | $0.75 |
Class of Warrant or Right, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' |
Class of Warrant or Right, Weighted Average Exercise Price, Issued | ' | $0.66 | ' | ' | ' |
Class of Warrant or Right, Weighted Average Exercise Price, Forfeitures | ' | $0.75 | ' | ' | ' |
Class of Warrant or Right, Weighted Average Exercise Price, Expirations | ' | $0 | ' | ' | ' |
Class of warrants, weighted average contractual life, expired | ' | '0 years | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 39,627 | 53,583 | ' | ' |
Class of warrants, weighted average contractual life, forfeited | ' | '0 years | ' | ' | ' |
Class of warrants, weighted average contractual life, issued | ' | '8 years | ' | ' | ' |
Stockholders_Deficit_Earnings_
Stockholders' Deficit Earnings Per Share dilutive effect on the shares outstanding (Details) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount Weighted Average | ' | 40,000 | 54,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 39,627,000 | 53,583,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | ' | 0 | ' |
SOF Warrants [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 0 | 1,000,000 |
Lion Warrants [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 21,606,000 | ' |
CEO AntiDilution Rights [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 13,611,000 | 20,416,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 5,000,000 | 6,805,000 | ' |
Debt to Equity Conversion [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 0 | 2,112,000 |
Employment Agreement 2012 [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 0 | 5,000,000 |
Outstanding Stock Awards [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 1,505,000 | 3,449,000 |
SharedBased_Compensation_Detai
Shared-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
non-employee | non-employee | Minimum [Member] | Maximum [Member] | Employment Agreement 2012 [Member] | Employment Agreement 2012 [Member] | Employment Agreement 2012 [Member] | Employment Agreement 2012 [Member] | Director [Member] | Director [Member] | Director [Member] | Director [Member] | Director Current [Member] | Director Current [Member] | Director Current [Member] | Stock Compensation Plan [Member] | CEO AntiDilution Rights [Member] | CEO AntiDilution Rights [Member] | CEO AntiDilution Rights [Member] | CEO AntiDilution Rights [Member] | CEO AntiDilution Rights [Member] | Executive Officer [Member] | ||||
installments | Minimum [Member] | Maximum [Member] | Rate | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Owned, Percent of Net Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount Weighted Average | ' | ' | 40,000 | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 805,000 | ' | 805,000 | ' | 1,850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | ' | ' | 988,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | -1,737,000 | ' | ' | ' | ' | ' | ' | -2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | -296,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $1.46 | ' | $1.46 | ' | $1.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | $0.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | ' | ' | $1.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | ' | ' | '0 years 2 months | ' | '0 years 11 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 700,000 | ' | 700,000 | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | 6,805,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $0.82 | ' | $0.82 | ' | $0.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | ' | ' | '7 years 0 months | ' | '7 years 10 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 700,000 | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $0.82 | ' | $0.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | '7 years 0 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $3,500 | ' | $3,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,500,000 | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, number of shares authorized per participant, annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,724,000 | ' | ' | ' | ' | ' | ' |
Share-based Compensation | 1,106,000 | 1,228,000 | 3,764,000 | 8,044,000 | ' | ' | ' | 0 | 1,015,000 | 0 | 235,000 | ' | ' | ' | ' | ' | ' | ' | ' | 268,000 | ' | 1,628,000 | 1,644,000 | 5,770,000 | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $1,162,000 | ' | $1,162,000 | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $340,000 | ' | ' | $340,000 | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,416,000 | ' | ' |
number of installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
number per each measurement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | 0 | 20,000 | 8,000 | ' | 4,000 | 16,000 | ' | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.88 | $0.87 | $0.50 | $1.21 | $0.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Number of Newly Appointed Directors | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Non-Employee Directors Resigned | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies Operating Leases (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Advertising commitments | $980 | ' | $980 | ' |
Operating Leases, Rent Expense | $18,271 | $19,790 | $55,611 | $59,154 |
Commitments_and_Contingencies_1
Commitments and Contingencies Loss Contingencies (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Subsequent Event [Member] | Cost of Sales [Member] | General and Administrative Expense [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Imports, amount, Germany | $5,409 | ' | ' | ' |
Loss Contingency Accrual, Payments | 4,390 | 85 | ' | ' |
Loss Contingency, Loss in Period | ' | ' | 83 | 5,326 |
Loss Contingency Accrual | $1,000 | ' | ' | ' |
Workers_Compensation_and_Other1
Workers' Compensation and Other Self-Insurance Reserves (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Rate | ||
Workers' compensation and other self-insurance reserves [Line Items] | ' | ' |
Letters of Credit Outstanding, Amount | $1,280 | ' |
self insurance reserves [Member] | ' | ' |
Workers' compensation and other self-insurance reserves [Line Items] | ' | ' |
Self Insurance Reserve | 1,386 | 2,512 |
Workers' Compensation [Member] | ' | ' |
Workers' compensation and other self-insurance reserves [Line Items] | ' | ' |
Other Accrued Liabilities, Noncurrent | 13,706 | 11,485 |
Accrued Liabilities | 5,086 | 3,871 |
Workers' Compensation Liability | 18,792 | 15,356 |
Letters of Credit Outstanding, Amount | 500 | 450 |
Deposits Assets, Current | 16,124 | ' |
Self-insurance reserve, undiscounted liability | $19,619 | $15,809 |
Loss Contingency Accrual, Insurance-related Assessment, Discount Rate | 1.54% | ' |
Business_Segment_and_Geographi2
Business Segment and Geographic Area Information Narrative (Details) | 9 Months Ended |
Sep. 30, 2014 | |
number_of_operating_segments | |
stores | |
Countries [Line Items] | ' |
Number of Operating Segments | 4 |
Number of Stores | 245 |
Other Foreign Countries [Member] | ' |
Countries [Line Items] | ' |
Number of Countries in which Entity Operates | 18 |
United States [Member] | ' |
Countries [Line Items] | ' |
Number of Stores | 138 |
Canada [Member] | ' |
Countries [Line Items] | ' |
Number of Stores | 31 |
International [Member] | ' |
Countries [Line Items] | ' |
Number of Stores | 76 |
Business_Segment_and_Geographi3
Business Segment and Geographic Area Information Key financial information of the Company's reportable segments before unallocated corporate expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | $155,869 | $164,543 | $455,362 | $464,839 |
Gross profit | 82,539 | 84,640 | 236,900 | 241,378 |
Loss from segment operations | -10,079 | -4,493 | -14,995 | -16,884 |
Depreciation and amortization | 6,404 | 6,738 | 19,822 | 19,155 |
Capital expenditures | 1,588 | 5,270 | 8,675 | 18,907 |
Retail store impairment | 1,193 | 233 | 1,921 | 311 |
Deferred rent expense (benefit) | -520 | -547 | -3,661 | -1,667 |
Interest Expense | 9,858 | 10,121 | 29,916 | 29,555 |
Foreign Currency Transaction Gain (Loss), before Tax | -616 | 449 | -748 | -422 |
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 1,785 | 12,922 | 6,250 | -5,225 |
Other Nonoperating Income (Expense) | 57 | -58 | 5 | -42 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -18,540 | -1,301 | -39,233 | -84,229 |
U.S. Wholesale [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 49,976 | 50,361 | 156,967 | 147,524 |
Gross profit | 13,761 | 13,390 | 47,122 | 40,359 |
Loss from segment operations | 7,178 | 1,407 | 26,045 | 12,887 |
Depreciation and amortization | 2,132 | 1,934 | 6,497 | 5,327 |
Capital expenditures | -24 | 1,360 | 2,133 | 5,847 |
Retail store impairment | 0 | ' | 0 | 0 |
Deferred rent expense (benefit) | -15 | 5 | -415 | 43 |
U.S Retail [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 50,277 | 54,303 | 141,712 | 149,811 |
Gross profit | 32,722 | 34,755 | 91,521 | 97,248 |
Loss from segment operations | 2,235 | -317 | -560 | -2,239 |
Depreciation and amortization | 2,807 | 3,172 | 8,972 | 9,231 |
Capital expenditures | 1,024 | 2,387 | 3,496 | 9,377 |
Retail store impairment | 581 | ' | 696 | 78 |
Deferred rent expense (benefit) | -284 | -338 | -2,636 | -1,114 |
Canada [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 13,214 | 15,033 | 36,691 | 42,842 |
Gross profit | 7,343 | 8,477 | 20,003 | 25,244 |
Loss from segment operations | 1,316 | 1,091 | 1,912 | 1,592 |
Depreciation and amortization | 414 | 507 | 1,269 | 1,388 |
Capital expenditures | 160 | 540 | 353 | 970 |
Retail store impairment | 114 | ' | 114 | 145 |
Deferred rent expense (benefit) | -56 | -66 | -155 | -279 |
International [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 42,402 | 44,846 | 119,992 | 124,662 |
Gross profit | 28,713 | 28,018 | 78,254 | 78,527 |
Loss from segment operations | -937 | 2,987 | 1,714 | 6,291 |
Depreciation and amortization | 1,051 | 1,125 | 3,084 | 3,209 |
Capital expenditures | 428 | 983 | 2,693 | 2,713 |
Retail store impairment | 498 | ' | 1,111 | 88 |
Deferred rent expense (benefit) | -165 | -148 | -455 | -317 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Loss from segment operations | 9,792 | 5,168 | 29,111 | 18,531 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Unallocated corporate expenses | 19,871 | 9,661 | 44,106 | 35,415 |
Consolidated Entities [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Interest Expense | 9,858 | 10,121 | 29,916 | 29,555 |
Foreign Currency Transaction Gain (Loss), before Tax | -616 | 449 | -748 | -422 |
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 1,785 | 12,922 | 6,250 | -5,225 |
Other Nonoperating Income (Expense) | 57 | -58 | 5 | -42 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -18,540 | -1,301 | -39,233 | -84,229 |
Wholesale Sales Channel [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 46,885 | 46,001 | 142,802 | 134,692 |
Wholesale Sales Channel [Member] | U.S. Wholesale [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 41,179 | 41,232 | 128,361 | 119,159 |
Wholesale Sales Channel [Member] | U.S Retail [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 0 | 0 | 0 | 0 |
Wholesale Sales Channel [Member] | Canada [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 2,699 | 3,044 | 7,434 | 9,236 |
Wholesale Sales Channel [Member] | International [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 3,007 | 1,725 | 7,007 | 6,297 |
Retail Sales Channel [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 95,822 | 104,902 | 269,649 | 287,104 |
Retail Sales Channel [Member] | U.S. Wholesale [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 0 | 0 | 0 | 0 |
Retail Sales Channel [Member] | U.S Retail [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 50,277 | 54,303 | 141,712 | 149,811 |
Retail Sales Channel [Member] | Canada [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 9,957 | 11,321 | 27,137 | 31,664 |
Retail Sales Channel [Member] | International [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 35,588 | 39,278 | 100,800 | 105,629 |
Online Sales Channel [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 13,162 | 13,640 | 42,911 | 43,043 |
Online Sales Channel [Member] | U.S. Wholesale [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 8,797 | 9,129 | 28,606 | 28,365 |
Online Sales Channel [Member] | U.S Retail [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 0 | 0 | 0 | 0 |
Online Sales Channel [Member] | Canada [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | 558 | 668 | 2,120 | 1,942 |
Online Sales Channel [Member] | International [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales to external customers | $3,807 | $3,843 | $12,185 | $12,736 |
Business_Segment_and_Geographi4
Business Segment and Geographic Area Information Reconciliation of reportable segments combined loss from operations to the consolidated loss before income taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $155,869 | $164,543 | $455,362 | $464,839 |
Consolidated income from operations of reportable segments | -10,079 | -4,493 | -14,995 | -16,884 |
Interest expense | -9,858 | -10,121 | -29,916 | -29,555 |
Foreign currency transaction loss (gain) | -616 | 449 | -748 | -422 |
Unrealized gain (loss) on change in fair value of warrants | 1,785 | 12,922 | 6,250 | -5,225 |
Gain (loss) on extinguishment of debt | 171 | 0 | 171 | -32,101 |
Other income (expense) | 57 | -58 | 5 | -42 |
Consolidated loss before income taxes | -18,540 | -1,301 | -39,233 | -84,229 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated income from operations of reportable segments | 9,792 | 5,168 | 29,111 | 18,531 |
Unallocated Amount to Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Unallocated corporate expenses | -19,871 | -9,661 | -44,106 | -35,415 |
Consolidated Entities [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Interest expense | -9,858 | -10,121 | -29,916 | -29,555 |
Foreign currency transaction loss (gain) | -616 | 449 | -748 | -422 |
Unrealized gain (loss) on change in fair value of warrants | 1,785 | 12,922 | 6,250 | -5,225 |
Gain (loss) on extinguishment of debt | 171 | 0 | 171 | -32,101 |
Other income (expense) | 57 | -58 | 5 | -42 |
Consolidated loss before income taxes | ($18,540) | ($1,301) | ($39,233) | ($84,229) |
Business_Segment_and_Geographi5
Business Segment and Geographic Area Information Net sales by geographic location of customer (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | $155,869 | $164,543 | $455,362 | $464,839 |
United States [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 100,253 | 104,664 | 298,679 | 297,335 |
Canada [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 13,214 | 15,033 | 36,691 | 42,842 |
Europe (excluding United Kingdom) [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 17,440 | 19,065 | 50,105 | 51,996 |
United Kingdom [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 11,158 | 11,552 | 31,527 | 31,735 |
South Korea [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 4,287 | 2,987 | 9,867 | 8,093 |
China [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 2,262 | 1,950 | 6,002 | 5,526 |
Japan [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 3,203 | 4,977 | 10,266 | 14,421 |
Australia [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 2,306 | 2,367 | 6,891 | 7,575 |
Other foreign countries [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | 1,746 | 1,948 | 5,334 | 5,316 |
Consolidated Entities [Member] | ' | ' | ' | ' |
Entity Location [Line Items] | ' | ' | ' | ' |
Net sales by geographic location of customers | $155,869 | $164,543 | $455,362 | $464,839 |
Litigation_Details
Litigation (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | employees |
Litigation Settlement [Abstract] | ' |
Number of employees dismissed due to Imigration and Customs Enforcement | 1,500 |
Insurance Settlements Receivable | $4,800 |
Estimated Insurance Recoveries | 850 |
Loss Contingency, Estimate of Possible Loss | $1,300 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
CURRENT ASSETS | ' | ' | ' | ' |
Cash | $9,389 | $8,676 | $4,913 | $12,853 |
Trade accounts receivable, net | 26,776 | 20,701 | ' | ' |
Intercompany accounts receivable, net | 0 | 0 | ' | ' |
Inventories, net | 150,960 | 169,378 | ' | ' |
Other current assets | 16,795 | 16,541 | ' | ' |
Total current assets | 203,920 | 215,296 | ' | ' |
Property and equipment, net | 55,291 | 69,303 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | ' |
Other assets, net | 47,978 | 49,153 | ' | ' |
TOTAL ASSETS | 307,189 | 333,752 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Revolving credit facilities and current portion of long-term debt | 27,060 | 44,042 | ' | ' |
Accounts payable | 33,868 | 38,290 | ' | ' |
Accrued expenses and other current liabilities | 61,464 | 50,018 | ' | ' |
Fair value of warrant liability | 14,704 | 20,954 | ' | ' |
Other current liabilities | 10,434 | 8,685 | ' | ' |
Total current liabilities | 147,530 | 161,989 | ' | ' |
Long-term debt, net | 216,160 | 213,468 | ' | ' |
Other long-term liabilities | 31,090 | 35,699 | ' | ' |
TOTAL LIABILITIES | 394,780 | 411,156 | ' | ' |
STOCKHOLDERS' (DEFICIT) EQUITY | ' | ' | ' | ' |
Common stock | 18 | 11 | ' | ' |
Additional paid-in capital | 217,650 | 185,472 | ' | ' |
Accumulated other comprehensive loss | -5,823 | -4,306 | ' | ' |
(Accumulated deficit) retained earnings | -297,279 | -256,424 | ' | ' |
Less: Treasury stock | -2,157 | -2,157 | ' | ' |
TOTAL STOCKHOLDERS' DEFICIT | -87,591 | -77,404 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | 307,189 | 333,752 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash | 0 | 0 | 0 | 0 |
Trade accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable, net | 256,164 | 247,414 | ' | ' |
Inventories, net | 0 | 0 | ' | ' |
Other current assets | 376 | 97 | ' | ' |
Total current assets | 256,540 | 247,511 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Investments in subsidiaries | -105,031 | -94,161 | ' | ' |
Other assets, net | 9,251 | 9,282 | ' | ' |
TOTAL ASSETS | 160,760 | 162,632 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Revolving credit facilities and current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued expenses and other current liabilities | 17,756 | 5,952 | ' | ' |
Fair value of warrant liability | 14,704 | 20,954 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 32,460 | 26,906 | ' | ' |
Long-term debt, net | 215,891 | 213,130 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
TOTAL LIABILITIES | 248,351 | 240,036 | ' | ' |
STOCKHOLDERS' (DEFICIT) EQUITY | ' | ' | ' | ' |
Common stock | 18 | 11 | ' | ' |
Additional paid-in capital | 217,650 | 185,472 | ' | ' |
Accumulated other comprehensive loss | -5,823 | -4,306 | ' | ' |
(Accumulated deficit) retained earnings | -297,279 | -256,424 | ' | ' |
Less: Treasury stock | -2,157 | -2,157 | ' | ' |
TOTAL STOCKHOLDERS' DEFICIT | -87,591 | -77,404 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | 160,760 | 162,632 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash | 1,076 | 512 | 535 | 3,796 |
Trade accounts receivable, net | 21,346 | 15,109 | ' | ' |
Intercompany accounts receivable, net | -240,669 | -224,181 | ' | ' |
Inventories, net | 117,144 | 129,716 | ' | ' |
Other current assets | 12,429 | 10,442 | ' | ' |
Total current assets | -88,674 | -68,402 | ' | ' |
Property and equipment, net | 42,732 | 53,424 | ' | ' |
Investments in subsidiaries | 17,396 | 18,158 | ' | ' |
Other assets, net | 28,760 | 27,934 | ' | ' |
TOTAL ASSETS | 214 | 31,114 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Revolving credit facilities and current portion of long-term debt | 27,047 | 43,586 | ' | ' |
Accounts payable | 30,951 | 34,738 | ' | ' |
Accrued expenses and other current liabilities | 30,455 | 28,344 | ' | ' |
Fair value of warrant liability | 0 | 0 | ' | ' |
Other current liabilities | 8,190 | 6,830 | ' | ' |
Total current liabilities | 96,643 | 113,498 | ' | ' |
Long-term debt, net | 0 | 47 | ' | ' |
Other long-term liabilities | 26,037 | 29,711 | ' | ' |
TOTAL LIABILITIES | 122,680 | 143,256 | ' | ' |
STOCKHOLDERS' (DEFICIT) EQUITY | ' | ' | ' | ' |
Common stock | 100 | 100 | ' | ' |
Additional paid-in capital | 6,726 | 6,726 | ' | ' |
Accumulated other comprehensive loss | -1,682 | -543 | ' | ' |
(Accumulated deficit) retained earnings | -127,610 | -118,425 | ' | ' |
Less: Treasury stock | 0 | 0 | ' | ' |
TOTAL STOCKHOLDERS' DEFICIT | -122,466 | -112,142 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | 214 | 31,114 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash | 8,313 | 8,164 | 4,378 | 9,057 |
Trade accounts receivable, net | 5,430 | 5,592 | ' | ' |
Intercompany accounts receivable, net | -15,495 | -23,233 | ' | ' |
Inventories, net | 33,746 | 39,736 | ' | ' |
Other current assets | 3,990 | 6,002 | ' | ' |
Total current assets | 35,984 | 36,261 | ' | ' |
Property and equipment, net | 12,559 | 15,879 | ' | ' |
Investments in subsidiaries | 0 | 0 | ' | ' |
Other assets, net | 9,967 | 11,937 | ' | ' |
TOTAL ASSETS | 58,510 | 64,077 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Revolving credit facilities and current portion of long-term debt | 13 | 456 | ' | ' |
Accounts payable | 2,917 | 3,552 | ' | ' |
Accrued expenses and other current liabilities | 13,253 | 15,722 | ' | ' |
Fair value of warrant liability | 0 | 0 | ' | ' |
Other current liabilities | 2,244 | 1,855 | ' | ' |
Total current liabilities | 18,427 | 21,585 | ' | ' |
Long-term debt, net | 269 | 291 | ' | ' |
Other long-term liabilities | 5,053 | 5,988 | ' | ' |
TOTAL LIABILITIES | 23,749 | 27,864 | ' | ' |
STOCKHOLDERS' (DEFICIT) EQUITY | ' | ' | ' | ' |
Common stock | 492 | 492 | ' | ' |
Additional paid-in capital | 7,869 | 7,685 | ' | ' |
Accumulated other comprehensive loss | -2,559 | -671 | ' | ' |
(Accumulated deficit) retained earnings | 28,959 | 28,707 | ' | ' |
Less: Treasury stock | 0 | 0 | ' | ' |
TOTAL STOCKHOLDERS' DEFICIT | 34,761 | 36,213 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | 58,510 | 64,077 | ' | ' |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash | 0 | 0 | 0 | 0 |
Trade accounts receivable, net | 0 | 0 | ' | ' |
Intercompany accounts receivable, net | 0 | 0 | ' | ' |
Inventories, net | 70 | -74 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | 70 | -74 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Investments in subsidiaries | 87,635 | 76,003 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
TOTAL ASSETS | 87,705 | 75,929 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Revolving credit facilities and current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued expenses and other current liabilities | 0 | 0 | ' | ' |
Fair value of warrant liability | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Long-term debt, net | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
TOTAL LIABILITIES | 0 | 0 | ' | ' |
STOCKHOLDERS' (DEFICIT) EQUITY | ' | ' | ' | ' |
Common stock | -592 | -592 | ' | ' |
Additional paid-in capital | -14,595 | -14,411 | ' | ' |
Accumulated other comprehensive loss | 4,241 | 1,214 | ' | ' |
(Accumulated deficit) retained earnings | 98,651 | 89,718 | ' | ' |
Less: Treasury stock | 0 | 0 | ' | ' |
TOTAL STOCKHOLDERS' DEFICIT | 87,705 | 75,929 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $87,705 | $75,929 | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information Statement of Operations and Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | $155,869 | $164,543 | $455,362 | $464,839 |
Cost of sales | 73,330 | 79,903 | 218,462 | 223,461 |
Gross profit | 82,539 | 84,640 | 236,900 | 241,378 |
Selling and distribution expenses | 52,640 | 63,982 | 159,145 | 177,235 |
General and administrative expense | 38,785 | 24,918 | 90,829 | 80,716 |
Retail store impairment | 1,193 | 233 | 1,921 | 311 |
Income (loss) from operations | -10,079 | -4,493 | -14,995 | -16,884 |
Interest expense | 8,461 | -3,192 | 24,238 | 67,345 |
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -18,540 | -1,301 | -39,233 | -84,229 |
Income tax (benefit) provision | 644 | 212 | 1,622 | 1,299 |
Net (loss) income | -19,184 | -1,513 | -40,855 | -85,528 |
Other comprehensive income, net of tax | -1,919 | 1,445 | -1,517 | -785 |
Comprehensive (loss) income | -21,103 | -68 | -42,372 | -86,313 |
Parent Company [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Selling and distribution expenses | 0 | 0 | 0 | 0 |
General and administrative expense | 10,101 | -195 | 10,986 | 311 |
Retail store impairment | 0 | ' | 0 | 0 |
Income (loss) from operations | -10,101 | 195 | -10,986 | -311 |
Interest expense | 7,236 | -3,521 | 20,518 | 56,764 |
Equity in loss (earnings) of subsidiaries | 1,847 | 5,229 | 9,351 | 28,453 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -19,184 | -1,513 | -40,855 | -85,528 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net (loss) income | -19,184 | -1,513 | -40,855 | -85,528 |
Other comprehensive income, net of tax | -1,919 | 1,445 | -1,517 | -785 |
Comprehensive (loss) income | -21,103 | -68 | -42,372 | -86,313 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 110,401 | 121,352 | 333,156 | 335,104 |
Cost of sales | 67,669 | 71,878 | 199,593 | 200,155 |
Gross profit | 42,732 | 49,474 | 133,563 | 134,949 |
Selling and distribution expenses | 30,202 | 39,747 | 91,851 | 105,488 |
General and administrative expense | 12,274 | 14,959 | 46,476 | 50,638 |
Retail store impairment | 580 | ' | 695 | 78 |
Income (loss) from operations | -324 | -5,232 | -5,459 | -21,255 |
Interest expense | 1,220 | 169 | 3,774 | 10,195 |
Equity in loss (earnings) of subsidiaries | 53 | -833 | -200 | -2,424 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | -1,597 | -4,568 | -9,033 | -29,026 |
Income tax (benefit) provision | 109 | 0 | 154 | -43 |
Net (loss) income | -1,706 | -4,568 | -9,187 | -28,983 |
Other comprehensive income, net of tax | -1,479 | 1,066 | -1,139 | -282 |
Comprehensive (loss) income | -3,185 | -3,502 | -10,326 | -29,265 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 55,621 | 60,015 | 156,683 | 169,000 |
Cost of sales | 15,550 | 24,876 | 53,131 | 63,680 |
Gross profit | 40,071 | 35,139 | 103,552 | 105,320 |
Selling and distribution expenses | 22,438 | 24,235 | 67,294 | 71,747 |
General and administrative expense | 16,401 | 10,140 | 33,367 | 29,757 |
Retail store impairment | 613 | ' | 1,226 | 233 |
Income (loss) from operations | 619 | 531 | 1,665 | 3,583 |
Interest expense | 5 | 160 | -54 | 386 |
Equity in loss (earnings) of subsidiaries | 0 | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 614 | 371 | 1,719 | 3,197 |
Income tax (benefit) provision | 535 | 212 | 1,468 | 1,342 |
Net (loss) income | 79 | 159 | 251 | 1,855 |
Other comprehensive income, net of tax | -2,269 | 1,411 | -1,888 | -847 |
Comprehensive (loss) income | -2,190 | 1,570 | -1,637 | 1,008 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | -10,153 | -16,824 | -34,477 | -39,265 |
Cost of sales | -9,889 | -16,851 | -34,262 | -40,374 |
Gross profit | -264 | 27 | -215 | 1,109 |
Selling and distribution expenses | 0 | 0 | 0 | 0 |
General and administrative expense | 9 | 14 | 0 | 10 |
Retail store impairment | 0 | ' | 0 | 0 |
Income (loss) from operations | -273 | 13 | -215 | 1,099 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in loss (earnings) of subsidiaries | -1,900 | -4,396 | -9,151 | -26,029 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 1,627 | 4,409 | 8,936 | 27,128 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net (loss) income | 1,627 | 4,409 | 8,936 | 27,128 |
Other comprehensive income, net of tax | 3,748 | -2,477 | 3,027 | 1,129 |
Comprehensive (loss) income | $5,375 | $1,932 | $11,963 | $28,257 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information Cash Flow Statements (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net cash (used in) provided by operating activities | $3,307 | ($8,804) |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -8,675 | -18,907 |
Proceeds from sale of fixed assets | 52 | 30 |
Restricted cash | 219 | 1,594 |
Net cash (used in) provided by investing activities | -8,404 | -17,283 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | -102 | 2,812 |
Repayments of expired revolving credit facilities, net | 0 | -28,513 |
Borrowings (repayments) under current revolving credit facilities, net | -16,965 | 28,713 |
Repayments of term loans and notes payable | -57 | -25,463 |
Repayments of Lion term loan | 0 | -144,149 |
Proceeds from Issuance of Senior Long-term Debt | 0 | 199,820 |
Net proceeds from issuance of common stock | 28,446 | 0 |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | -414 | -2,133 |
Payments of debt issuance costs | -2,099 | -11,880 |
Repayments of capital lease obligations | -1,932 | -773 |
Advances to/from affiliates | 0 | 0 |
Net cash provided by (used in) financing activities | 6,877 | 18,434 |
EFFECT OF FOREIGN EXCHANGE RATE ON CASH | -1,067 | -287 |
Net increase (decrease) in cash | 713 | -7,940 |
Cash, beginning of period | 8,676 | 12,853 |
Cash, end of period | 9,389 | 4,913 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | 471 | 5,270 |
Parent Company [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net cash (used in) provided by operating activities | 9,600 | 977 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Restricted cash | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | 0 | 0 |
Repayments of expired revolving credit facilities, net | ' | 0 |
Borrowings (repayments) under current revolving credit facilities, net | 0 | 0 |
Repayments of term loans and notes payable | 0 | 4,500 |
Repayments of Lion term loan | ' | -144,149 |
Proceeds from Issuance of Senior Long-term Debt | ' | 199,820 |
Net proceeds from issuance of common stock | 28,446 | ' |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | -414 | -2,133 |
Payments of debt issuance costs | -1,745 | -11,237 |
Repayments of capital lease obligations | 0 | 0 |
Proceeds from Contributions from Affiliates | ' | -47,778 |
Advances to/from affiliates | -35,887 | ' |
Net cash provided by (used in) financing activities | -9,600 | -977 |
EFFECT OF FOREIGN EXCHANGE RATE ON CASH | 0 | 0 |
Net increase (decrease) in cash | 0 | 0 |
Cash, beginning of period | 0 | 0 |
Cash, end of period | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | 0 | 0 |
Guarantor Subsidiaries [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net cash (used in) provided by operating activities | -18,005 | -25,732 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -5,629 | -15,223 |
Proceeds from sale of fixed assets | 0 | -14 |
Restricted cash | 0 | 3,265 |
Net cash (used in) provided by investing activities | -5,629 | -11,972 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | -102 | 2,812 |
Repayments of expired revolving credit facilities, net | ' | -28,513 |
Borrowings (repayments) under current revolving credit facilities, net | -16,532 | 32,878 |
Repayments of term loans and notes payable | -47 | -29,953 |
Repayments of Lion term loan | ' | 0 |
Proceeds from Issuance of Senior Long-term Debt | ' | 0 |
Net proceeds from issuance of common stock | 0 | ' |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | 0 | 0 |
Payments of debt issuance costs | -354 | -643 |
Repayments of capital lease obligations | -1,885 | -739 |
Advances to/from affiliates | 43,118 | 58,601 |
Net cash provided by (used in) financing activities | 24,198 | 34,443 |
EFFECT OF FOREIGN EXCHANGE RATE ON CASH | 0 | 0 |
Net increase (decrease) in cash | 564 | -3,261 |
Cash, beginning of period | 512 | 3,796 |
Cash, end of period | 1,076 | 535 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | 217 | 4,682 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net cash (used in) provided by operating activities | 11,712 | 15,951 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -3,046 | -3,684 |
Proceeds from sale of fixed assets | 52 | 44 |
Restricted cash | 219 | -1,671 |
Net cash (used in) provided by investing activities | -2,775 | -5,311 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | 0 | 0 |
Repayments of expired revolving credit facilities, net | ' | 0 |
Borrowings (repayments) under current revolving credit facilities, net | -433 | -4,165 |
Repayments of term loans and notes payable | -10 | -10 |
Repayments of Lion term loan | ' | 0 |
Proceeds from Issuance of Senior Long-term Debt | ' | 0 |
Net proceeds from issuance of common stock | 0 | ' |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | 0 | 0 |
Payments of debt issuance costs | 0 | 0 |
Repayments of capital lease obligations | -47 | -34 |
Advances to/from affiliates | -7,231 | -10,823 |
Net cash provided by (used in) financing activities | -7,721 | -15,032 |
EFFECT OF FOREIGN EXCHANGE RATE ON CASH | -1,067 | -287 |
Net increase (decrease) in cash | 149 | -4,679 |
Cash, beginning of period | 8,164 | 9,057 |
Cash, end of period | 8,313 | 4,378 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | 254 | 588 |
Consolidation, Eliminations [Member] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net cash (used in) provided by operating activities | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 0 |
Restricted cash | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Cash overdraft | 0 | 0 |
Repayments of expired revolving credit facilities, net | ' | 0 |
Borrowings (repayments) under current revolving credit facilities, net | 0 | 0 |
Repayments of term loans and notes payable | 0 | 0 |
Repayments of Lion term loan | ' | 0 |
Proceeds from Issuance of Senior Long-term Debt | ' | 0 |
Net proceeds from issuance of common stock | 0 | ' |
Payments of payroll statutory tax withholding on share-based compensation associated with issuance of common stock | 0 | 0 |
Payments of debt issuance costs | 0 | 0 |
Repayments of capital lease obligations | 0 | 0 |
Advances to/from affiliates | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
EFFECT OF FOREIGN EXCHANGE RATE ON CASH | 0 | 0 |
Net increase (decrease) in cash | 0 | 0 |
Cash, beginning of period | 0 | 0 |
Cash, end of period | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Property and equipment acquired, and included in accounts payable | $0 | $0 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information Ownership (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Rate | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Sale of Stock, Percentage of Ownership after Transaction | 100.00% |