American Apparel Unraveling
Posted on Aug 19, 2010
American Apparel, the paradoxical clothing firm that weaves together good labor practices with ridiculous acts of misogyny, is hanging by the proverbial economic thread as its stock plunges to an all-time low and industry experts begin to seriously doubt the company’s future. —JCL
Los Angeles Times:
A day after American Apparel Inc. admitted that its future hangs by a thread, the hipster Los Angeles clothing maker and retailer was scrambling to overhaul operations, bolster sales and repair its faltering image.
After warning this week that there was “substantial doubt that the company will be able to continue as a going concern,” the company saw its stock fall 21.3% on Wednesday, ending at an all-time low of 81 cents. That was on the heels of a 26% plunge the day before.
In recent months, the troubled company has been beset by sales declines, losses, a crackdown on undocumented workers, problems with its debt, delayed quarterly filings and, most recently, an investigation by the U.S. attorney’s office in New York related to the company’s abrupt change in accounting firms.
Flickr / anitasarkeesian