Insider Scoop: Is American Apparel Facing Financial Trouble?
Even the most American company peddling tee shirts and trendy, neon colored jeans isn’t safe from this hard-hitting recession. American Apparel, the company that made a name for itself with its pornographic ads, overpriced tee shirts and sparkly spandex (Thank God that trend is dying) has recently dodged filing for bankruptcy, according to an article published in Los Angeles Business Journal.
Image via American Apparel
This isn’t the first time that American Apparel has been under fire. In the past, CEO Dov Charney has been accused of sexual harassment, in addition to the string of e-mails leaked last month that implied the company is in financial trouble. On Christmas Eve, CFO Adrian Kowalewski wrote,
” We almost went bankrupt last Friday.”
Sounds pretty ominous. However, there’s always a chance for a resuscitation if American Apparel can get some new investors to pump money into the popular company. How difficult could it be? Plenty of rich people wear American Apparel…not just Silver Lake hipsters and college students who are too cool to go to the Beverly Center…right?
According to a January press release, American Apparel reported that sales (only for stores that have been open for more than a year) increased 2%. These numbers are significantly lower compared to January 2008, when American Apparel stores had sales increasing by 40%.
We’re hoping for the best!
Image via Americanapparelstore.com
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good story
Actually I disagree. That article you linked to is 2 months old and I remember a Reuters followup to that New York Post story that basically said the whole thing was made up.
You don’t post a 2% sales increase when the average for everyone else was -11% and go bankrupt. They are THE brand everyone is talking about.
if i needed something plain and neutral i would go there. american apparel is an ok brand, but i would not call it “THE brand” everyone is talking about. they dress their mannequins in ridiculous outfits and half the stuff just looks kinda crappy.
THE brand? You mean, THE brand of 2007? I like AA and all, but they’re definitely not “THE” brand. I would say Alexander Wang is “THE” brand now, you loser.