American Apparel on verge of bankruptcy
By Lindsay CutlerAugust 20th, 2010, 3:12 pmComments (11)
In less than ten years, American Apparel has risen from that store where you can buy your fair-labor solids to a hipster retail behemoth. Considering sales and brand awareness has spiked in the last few years, it's surprising that their earnings have been so low.
Their last quarter's earnings - which were reported late, never a good sign - were the lowest in the company's history. They're now shouldering a debt of over $121 million in addition to its twenty-one percent stock plunge.
How exactly did this happen? Maybe it's bad hiring practices, poor management, the fact that everyone in corporate is expected to look like a floor employee, or because no one told them that The Elaine Benes is the new thing, but they're almost certainly on their way out.
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Comments ( 11 )
It's about time.
I agree, it's about time. There's just no way a store that obsessed with having beautiful working for them at all levels of business can be successful.
Plenty of designer stores have that beautiful people only provision and continue to do okay (last I checked???). American Apparel isn't a designer store, though. Their clothes are just ridiculous "basics" and catered to a passing fad. Their idea of keeping up with the times is by introducing assless hosiery. That can only get you so far on the trend train. Then there's, of course, the other crap they have on their hands. Whatever, hope they sink, toodle loo!
I think this is a sad development, firstly because they make the damn clothes here in the US, and secondly because their ads always amuse me.
If you think American Apparel still makes their clothes in the US, go spend some more time on the internet.
And that, my friends, is the immigration debate in a nutshell. It's pretty much impossible to make any money making cheap stuff in the US unless you use undocumented immigrant labor. There is a reason why sweatshops exist.
Am App is a fucking joke! I remember the first time I saw one of their adds, literally thought it was a fucking joke! I can't believe they actually made it as far as they did and CANNOT WAIT for the day I don't have to see their extremely distasteful adds anymore!!!
I'm not surprised--the public wasn't going to put up with uncomfortable, overpriced t-shirts modeled by drugged-out losers forever. To say nothing of Dov Charney's habit of sexually harassing any woman who got within grabbing distance. Good riddance!
So sad. Progressive types were so excited to finally find a decent quality clothing company that made their stuff ethically - then we all switched off once the ads and Dov Charney's reputation started getting known. They could have easily made a profit by taking the high road.
Maybe if corporations didn't have to worry about how to fund health care for their employees and could instead focus on making quality products cheaply and locally, everyone would be better off?
Oh noes! Whose clothing ads will I turn to for unexpected arousal now!?!?
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