Tuesday, August 24, 2010

am appy uh-oh!

Basic clothier American Apparel is in the midst of a financial crisis, as founder Dov Charney looms in worry over the company’s $120.3 million debt. Losses have reached $7 million in the past three months alone.

“Based on this, and trends occurring in the company’s business after the second quarter and projected for the remainder of 2010, the company may not have sufficient liquidity necessary to sustain operations for the next 12 months”, the company reported.

American Apparel employs over 10,000 worldwide in it’s over 280 stores and many of these individuals are in danger of losing their jobs.

In an attempt to increase consumer spending, the retailer is moving away from its ‘hipster’ appeal and image and opting for a more preppy, timeless look. Charney stated: “Hipsters are from a certain time period. The stereotype of a hipster is not something people aspire to anymore. Do you want to be a hipster? Nobody wants to be a hipster.”

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