American Apparel May Be Headed for the End
For real, this time.
It's been a rough year of lawsuits and losses for American Apparel, and now the company has reported that a depleted cash reserve and plummeting sales could result in the retailer's demise within the next 12 months.
Earlier this year, the company reported $26 million in losses, however, CEO Paula Schneider, who officially took over the position in December of 2014, attributed the astronomical numbers to the company's restructuring process as it worked to revamp everything from ad imagery to store design to the clothes themselves.
With a total of over $235 million in long-term debt — not including legal fees from the company's ongoing saga with former CEO Dov Charney — the future of American Apparel is looking grim.