Monday, April 4, 2011

American Apparel May Declare Bankruptcy

American Apparel suffered a lost of $86.3 million dollars in 2010.  Currently the company is also in serious debt owing several million dollars to banks in the United States, Canada, and England.  On February 28, 2011 the brand only had $5.3 million in cash due to the declining stock prices and sales.  CEO Dov Charney says declaring for bankruptcy is that last thing he would consider.  However, since American Apparel hired investment bank Rothschild in hopes they would find potential investors but so far things have not been looking up for the company.  If the company does not get some serious cash, the brand may be liquidated potentially within the next 12 months.

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