06 January 2012 by

American Apparel: Saved by Groupon?

Well this is very good news indeed.

American Apparel, which was the subject of various doom-laden headlines through 2011, has reported a pretty impressive rise in sales over December. And in part, this was down to secretly-brills-but-not-terribly-chic discount website Groupon, which AA paired up with before the festive season began.

Now – some figures. The increases we are talking about amount to a total increase of 15% (not sure how; the details are lost on us but it’s something to do with a combination of wholesale, direct store sales and online sales - none of which we can make add up to 15). Regardless, the important number is this: $56.3 million, which was what the company’s total sales in December came to. $56.3 million! Even for a company that is on famously shaky ground, financially, this is a lot of money. According to industry bible WWD, American Apparel’s debts currently hover at around $161.6 million, comprising $47.6 million to Bank of America and $114 million owed to Lion Capital.

WWD also reports that Dov Charney, American Apparel CEO responded in a typically hipsterish way to the news that his company had been saved by a naff discount site, saying ‘we’re getting our groove back a bit… We’re methodically going through each door, inspecting them and looking for ways to improve productivity’.

Whatever you say, Dov. Still; we’re pleased for you.


Comments

All posts must obey the house rules, if you object to any comments please let us know and we'll take the appropriate action.