Wednesday, August 18, 2010

American Apparel Apparently Broke?

L.A based clothing company, American Apparel might be closing their doors in the next year or so. AA stocks are going down and the company is losing a lot of financing. Meaning in the next few months the company may go broke. CEO Dov Charney said his company "may not have sufficient liquidity necessary to sustain operations for the next twelve months."

Since expanding and going public in 2007, the company has rapidly grown in popularity and has expanded to 19 countries and 260 stores. However store sales have dropped by 16% compared to this time last year and for the first 3 months of the year they have lost $5 - $7 million in operations.

I guess sex doesn't sell in this time around, since their very racy and sexually-charged ads can't help them get out of this economical deficient. Man, CEO Dov Charney can't catch a break. Earlier in the year, the American clothing company suffered from allegations of shoddy labor practices and now this!!!!!

All I want to know is, does this mean a sale is around the corner and if so when?

Poor ting. Literally.


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