Death watch: American Apparel close to bankruptcy

Like so many pairs of discarded jeggings, the bad news keeps piling up for American Apparel. This time, the company has issued a warning that there is “substantial doubt that the company will be able to continue as a going concern,” meaning that AA is close to liquidation and bankruptcy. Shares of the stock fell 15 per cent yesterday, after already losing 55 per cent of their value since January. In its most recent report, the company also noted losses of up to $7 million, a likely breach of its loan with creditor Lion Capital, and warns that losses are likely to continue through the third quarter. Guess the rebranded ads haven’t helped much. We hate to see any business go under, but perhaps the closure of AA will mean we’ll finally stop seeing dudes wearing shirts like this at Hanlan’s Point.

• American Apparel warns about mounting debts and losses [BBC]