Will American Apparel go bust?

25 June 2010

Purveyor of stretchy pants and shiny leotards, American Apparel, has occasionally been in the news... for arguably the wrong reasons. There was mild outrage in the States over ‘porn chic’ style adverts, featuring the brand’s own shop assistants in provocative poses, while recently when the strict style codes for prospective employees, with bans on wearing foundation, liquid eyeliner, plucked eyebrows and even fringes, were posted online, there was much debate over whether they'd gone too far.

Now the company is hitting the headlines again for altogether different reasons. According to NY magazine, financial analysts don’t know how the company can keep going. With mounting debts and no plan to pay creditors, the price of stocks has tumbled so far the company might be delisted from the stock exchange.

Meanwhile controversial founder and guru-like figure, Dov Charney is relaxed about the crisis. “Our company in the past has been through these types of issues before and it’s never really presented us with any particular difficulties in running our business,” he told business analysts recently.

We don’t really want to see the company close, but must confess to dropping less cash there since the rest of the high street started competing with great colourful basics. That and imagining the carnage that could be any potential closing down sale. We still get scary flashbacks remembering the crush of the Easter warehouse sale in Brick Lane.

- Naomi Attwood

 


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