American Apparel going through difficult times

American Apparel going through difficult times


Shop

For American Apparel right now, there is no other solution than closing stores and laying off employees: the company has to save $30 million.

Bad news of major brands having to close stores and/or lay off employees are becoming quite common these days. After The Gap announced last month the closure of more than 150 stores, American Apparel just made a similar statement. In order to "return the business to long-term profitability", the Los Angeles based clothing manufacturer has to make deep cuts to save... $30 million. American Apparel hasn't given any further precision on how many stores and people will be affected by this drastic plan, but the company intends to gradually reverse the situation within the next 18 months. American Apparel counts more than 10,000 employees and 260 locations worldwide. And over the last five years, the clothing brand faced more than $300 million of sales losses.

Dov Charney, its founder and CEO, was fired last December and does not especially remains in good terms with the board of directors. Paula Schneider, former fashion executive, was promoted in January and has already made a few welcomed changes, including in the marketing strategy and the management structure. Still, Schneider is objective about the situation and if she's doing her best, she doesn't make any promises: "Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next twelve months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital".

*Photo: Beyond My Ken

News written by the team of Stores-Locator.com Stores-Locator.com

News in the same category

Good & Gather : the new brand by Target

Good & Gather : the new brand by Target

Target is getting ready to introduce its new grocery brand, Good & Gather throughout the US.

  • Shop
  • Food/Health
The biggest H&M store opens in New-York City

The biggest H&M store opens in New-York City

H&M opened its first US store in New-York City in 2000, on Fifth Avenue. 15 years later, Manhattan will be the location of the brand's largest store ever.

  • Shop
Hermès opens a shop in New York

Hermès opens a shop in New York

Influential in the retail world since 1837, Hermès the luxury brand store has opened a new shop in New York.

  • Shop
Gap has to close 175 store in the US

Gap has to close 175 store in the US

The Gap, the once cool clothing brand is facing hard times and has to close 175 of its stores in North America. Europe is on the list too.

  • Shop
American Apparel going through difficult times