American Apparel to Close?

A somber CEO and Chairman Dov Charney donning his own American Apparel.

After rumors have been swirling for months, American Apparel has finally publicly declared they are in danger of filing for bankruptcy. A local favorite for clothing basics and costume accessories, the global brand is in some serious financial trouble. According to the Wall Street Journal, “if it can’t improve its sales or cash position or find other sources of financing to keep it afloat,” in the immediate future, our beloved American Apparel may soon be no longer in existence. Current options the company is looking into to turn things around include investor assistance, liquidation, and shutting down various branches in the United States.

In addition to losses totaling $86.3 million this year, American Apparel is also facing a great deal of backlash regarding recent sexual abuse charges against Chairman and CEO Dov Charney by a former employee. Unfortunately for the company, which is already known for its racy ads, this isn’t the first charge involving inappropriate conduct that’s been made against Charney. Hopefully for American Apparel, and themed parties, the CEO’s questionable reputation won’t hinder investors from bailing the company out of its severe and growing debt.

Kelsey Bucsko
BARE Reporter

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