Facts slightly hurt our brain(s)

Yesterday American Apparel reported that its recent Canadian investors are looking to sell their 43.2 million shares after just four months. Yikes. Sounds like someone wants to get out while they still can. In addition the shares are being put up for a secondary offering – ie a direct sale to someone else – which means AA will not get any of the money.

This is sorry news as DbyDC quite likes American Apparel. True, you don’t get a lot of spandex to the pound but they do a good line in quality basics plus cotton t-shirts in every colour of the rainbow. And when a financier invests $15 million in a company only to change its mind four months later, that generally signals bad times ahead.

However, the real sorry state of affairs was not the news that AA might be in trouble but the way that Grazia reported it: American Apparel registered 43.2 million shares for a potential secondary offering, which encompasses the 24.2 million shares the Canadian investment group now holds, in addition to the 19 million shares they hold the right to purchase.

“We don’t know what this means,” they simpered. “But it doesn’t sound good.” Then they all dissolved into giggles. Probably.

So, if they had no idea what they were talking about, why exactly were they quoting it? Why were they copying it out verbatim rather than doing their jobs and interpreting the information before, say, wording it according to their house style and reader demographic?

“Because the facts slightly hurt our brain.”

Good Lord. Is it really beyond the wit of Grazia to call up somebody who knows about finance and ask them? DbyDC did not know what a ‘secondary offering’ was until yesterday so we emailed someone we know who works in finance and asked them. It’s a simple trick. Most journalists are familiar with it (even fashion journalists). Hell, most people are familiar with it.

To finish, let’s just pause a moment and reflect on the revelation that the Grazia team only have one brain between them. Sigh. I feel this would be an opportune moment to crack out the American expression go figure.

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One Response to “Facts slightly hurt our brain(s)”

  1. […] to do with itself. But yes, word has reached us that Nancy Upton, who took on troubled retailer American Apparel over their ‘plus size’ model competition, has actually WON. No, not a lawsuit, that […]

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