How Can American Apparel, Lululemon Turnaround?

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June 24 (Bloomberg) -- Kobi Partners Managing Partner Greg Rayburn weighs in on the ouster of American Apparel’s CEO, Lululemon’s future and rebuilding Hewlett-Packard. He speaks on “In The Loop.” (Source: Bloomberg)

Take on.

First, american apparel.

You have a founder booted out as eeo, how do you turn around with that elephant on your back?

Click that is difficult.

The circumstances are probably different him up but he would not be the under -- the first founder who would come back in and take over after being ousted.

It is hard on the company.

That sort of distraction at the ceo level makes it hard on your culture and you will have division that get created because of that.

I do not necessarily know why he is waiting this because i do not know he would have much of a shot to win.

I do not know what a win-win the in this situation.

Another example of a turnaround company here, trying to perhaps push for a sale of this company.

Disrupting the day to day management for the bigger picture.

In that circumstance, it is interesting.

I know he is working with goldman and they are looking at all options.

The obvious options to me would be to take it private and put a bid in, stock rises, so you could put a bit in.

The other would be a private sale of interest.

A sale that goldman would help them do.

It seems his concerns are that they are not doing enough long-term men and that they are more focused on quarterly.

When you are a public opportunity, that is that the right.

The price as a founder going public and aching that cash is that you will be under the quarterly radar.

Which one of the companies has a better chance?

Lululemon because i think the rotted category -- they were the flagship and that category.

American apparel is not a very take company.

A lot of markets and a lot of these.

Maybe they caught lightning in the bottle in the fashion side very diffuse the right now in the land gate, it is death right now especially in terms of apparel and the younger market for this.

They are all struggling.

I want to turn to tax.

-- tech.

Goldman sachs recently updated the stock based on the success of the turnaround strategy.

Do you believe it?

Meg whitman is a great ceo and the question for comp knees like that, when you do a turnaround, i am looking for what market the business should be in to be success long-term.

The more that market is somewhat cohesive to where you have been, the easier that is to do.

When you go further from that to what you want to be, and where you have been, you make it harder.

Ibm is looking at cloud and the struggles they have had as and if neville.

I do not know that the stock is reflecting right now that vision is perfect or that it makes a lot of sense.

Seems like making decisions more important.

Quest that is right.

It is not about cost reduction as a sole reason to do that.

It is also noise reduction and vocus there it i tell people all the time that usually in the middle of a turnaround tom a your most limited resources your time and energy and focus of your management team.

To the extent you are overly focused on business is that are part of that core.

That will make it take much longer to get there very the fact she is doing that is a good thing.

Quest who do you want to work for?

I would love to fix the veterans administration.

It is such a shameful situation for the country.

To me, that is a blight and there is no excuse.

Quest love would you do?

Probably the same process, where you have to go in and figure out, what should you be doing.

There should not be these wait times.

Look at the end goal and once you figure that out, you step that is day, here are the incentives that need to be in lace.

In some cases, literally, you just need to knock heads together.

Quest veterans administration.

Thank you or sticking with me for the hour.

We will be right back.

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This text has been automatically generated. It may not be 100% accurate.

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