The famed, stylish and scandalous company that makes us want to buy socks is most likely shutting down in the next 12 months. A recent press release from the American Apparel company itself gave some subtle but well felt hints that things are going so well.
It’s stated that $30 million cost cutting will be taking place meaning stores shutting down and people will be losing their jobs. Also something they are battling with is the ongoing legal troubles with the former CEO Dov Charney who has been stated to have 20 active lawsuits, not cheap, especially if succesful. The release says they will do their best to recover, but the overall tone was hinting on bowing out.
“Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the Company will have sufficient financing commitments to meet funding requirements for the next twelve months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital,” – AA release