American Apparel, the go-to hipster retailer, has reported that it is pushing back its quarterly filing because their losses are higher than they had initially anticipated. Last year, the company had reported $16.2 million in total losses, but in this recent three month period, their losses have jumped up to $19.4 million.
I never, ever, ever want to know what it’s like to lose $134 million dollars in a two year span.
On top of the $134 million loss, the company has to pay a $15.4 million bond payment, $3.6 million in legal bills from a lawsuit with its founder and former CEO, Dov Charney, and another cool $34 million it owes the federal government. To add insult to injury, should the company go under, Dov Charney, the CEO the company pushed out, is a potential buyer of the company.
In short, American Apparel is economically screwed. It was also reported that the company has less than $10 million on hand—meaning that they are really done. It seems that even the most creative of financial plans won’t keep this company afloat.
Maybe this means that their $40 plain white t-shirts will be reduced to a nice $5? I can’t say I’m surprised. No one wants to pay that kind of money for basic clothing—I’m just surprised it took so long for this kind of economic failure to erupt.
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