Deathwatch: American Apparel gone in 12 months?
Clothes vendor and pervy advert shooters, American Apparel, may be dead within 12 months. That's according to themselves as they've said they might not have enough capital to stay open. This is thanks to net sales dropping more than 17% in the second quarter of 2015, with their net loss up to $19.4m.
In a filing yesterday, they said that their decline in sales was "attributable to the lack of new style introduction for the spring and summer selling season". They also say that their drop in sales is to do with unfavourable foreign exchange rates and, of course, they've been closing loads of their shops.
In addition to that, the company are being sued by founder and former chief exec, Dov Carney, who got the chop in June after being accused of 'misconduct'.
Either way, the biggest problem they've got is that they've been posting losses for the last five years, which is absolutely no use to anyone.
And so, they've got some fast changes to make or they'll be doomed. They've announced $30m of cost-cutting measures, and if that doesn't work, they're toast. For anyone who enjoys a meal regularly, or is over the age of 23, this will mean nothing to you. Hipsters - you need to find a new place to shop.