Wednesday, October 6, 2010

American Apparel Saved From the Poor House

Several weeks ago, Liipstik reported that L.A based clothing company American Apparel was going out of business due to their debt problems. However since then, the tables have turned. CEO Dov Charney won't have to worry about filing his company for bankruptcy anymore.

American Appreal lenders, Lion Capital, have agreed to help out the company so they do not have to go out of business. So all thier money problems are over and you can stop holding your breath for their going out of business sale because it's never going to happen.

Lion Capital has invested tons of money in the company to ensure their financial stability in the unstable economy. Dov Charney continues to believe strongly in his company. He says, “Retail is hard right now. I’m not alone in this. You have to work for every dollar, you have to work on the merchandise, make sure the product mix is perfect and the allocation is right. It’s a tough market right now.”

Hey, I'm happy to hear the company will still have its doors open in the next few years. Let's just hope they don't face anymore troubles for the year.


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