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]
![](http://www.facebook.com/sharer.php?u=https://torontolife.com/style/death-watch-american-apparel-close-to-bankruptcy/&title=Death watch: American Apparel close to bankruptcy&picture=https://torontolife.com/wp-content/uploads/2010/08/pleatedpantsad.jpg&description=[caption id="attachment_35834" align="alignleft" width="320" caption="It's not just the pleats that make her sad"][/caption]
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]){kind=link}
I gotta say, while I don’t wish any financial strain on the people who work there (even though American Apparel staff generally have the IQ equivalent of a cement block), perhaps they should have thought twice about the current stock of ‘clothes.’ I’m pretty sure I’ve made better clothes out of my old clothes in my basement as a high school student.
Even mindless hipsters have standards.
1988 called, they want their pants back!
Anytime a major retail chain goes under you have to think of all the staff losing their jobs, the empty stores that stop paying rent and hence taxes, and whether those sales will be gobbled up by another chain or if people are cutting down on their spending. I often look at the high salaries the executives of these chains are taking.
NOOOOO!!!!!!! American apparel cant be closing! this is my favorite store! its so unique!!!!