Death of the hipster? American Apparel in serious financial trouble
We might soon be shopping for our low-cut V-neck tees at Urban Outfitters, because American Apparel is in some dire financial straits. Last March, the company secured an $80-million loan that helped it escape a looming bankruptcy, and yesterday, American Apparel shares dropped 42 per cent when it revealed it likely won’t meet its obligations to debtors.
In trying to fix its financial woes, the company has delayed filing its first quarter results, leading the American Stock Exchange to consider delisting the stock. In Toronto alone, there are seven American Apparels to sate the need for shiny metallic spandex tights, but same-store sales in Canada are down 15 per cent (they’re down three per cent in the States). If American Apparel goes under, where will we get our semi-pornographic advertising? Oh, wait.
• American Apparel’s latest financial mess [New York]
• American Apparel shares sink [Reuters]