American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles. American Apparel employs over 6,800 people and operates over 184 retail stores in 13 countries. Its market capitalisation is approximately US$675 million on a fully diluted basis (NZ$837 million). American Apparel was acquired by (and merged with) the former Endeavor Acquisition Corp in December 2007. Endeavor was a special purpose acquisition company (SPAC) listed on the American Stock Exchange, which raised US$129.3 million in December 2005, of which Mr Watson was chairman and treasurer.

For the full year ended 31 December 2007, American Apparel reported an increase of 36% in annual revenues to US$387 million (NZ$483 million) and an increase in same store sales open longer than 12 months of 29%. Adjusted EBITDA rose 83% to $58.6 million.

In announcing the 2007 results, Dov Charney, Chairman and Chief Executive Officer, stated: "I am very pleased by the growth in sales and profitability that American Apparel posted in 2007, our most successful year ever. So far, 2008 is shaping up to be a very strong year for American Apparel as well. In the past few weeks, we opened our first store in Australia, in Melbourne, and our first store in Belgium, in Antwerp. With fresh capital invested in the business, and a growing pipeline of signed leases, we intend to develop American Apparel into a pre-eminent, global retail brand."

On completion of the acquisition in December 2007 the return for the SPAC investors on the initial original US$8 unit price was over 200% based on the 12 December 2007 closing price of US$24.25.