American Apparel, the colourful, sex-fixated casual wear chain looks more likely than ever to not survive their current financial situation. At present they are estimated to be more than £58m in debt (!) and losing money fast.
Dov Charney, the controversial founder and CEO recently explained –
'A lot of assumptions that I grew up with are no longer reality," he says. "Those were things that we could rely on: that lenders will always be there, that they'll behave ethically and they'll always have money, that you can trust that as the sun comes up the consumer will be healthy, that we'll always be close to full employment in developed nations. Now there are no certainties.'
The company’s sales are down 16% and it hasn’t been filing its accounts, which means it could be taken off the stock exchange. The company was started in 1990 by Charney, who began making T shirts in LA to sell wholesale and since then it has grown to 280 outlets world wide. Hallmarks of the company have always been the ‘made in
Now the company have admitted they 'may not have sufficient liquidity necessary to sustain operations for the next twelve months.'
While business journalists say it could be bankrupt in as little as a month . . . Eep! Will you miss the chance to buy leggings in every shade of the rainbow if it goes? Or are you one of their former devotees to have stopped shopping there of late? Let us know!
- Naomi Attwood