Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

American Apparel warns of imminent closure

Troubled US retailer American Apparel has warned of “substantial doubt” that it will be able to continue trading beyond the next 12 months, as sales fell 17.2% to $134m (£86m) in the second quarter.

The company said the decline “was attributable to the lack of new style introduction for the spring and summer selling season”. It also blamed store closures and unfavourable currency exchange rates.

Its net loss grew to $19.4m (£12.4m) in the three months to June 30, up from $16.2m (£10.3m) in the same period last year.

At 30 June, the company had just $6.9m (£4.4m) in cash remaining to fund ongoing operations.

“We believe that we may not have sufficient liquidity necessary to sustain operations for the next 12 months,” the company said.

In July, American Apparel announced plans to close underperforming stores and cut jobs in order to make savings of $30m (£19.4m) over the next 18 months. It is not known if any of its stores in the UK will be affected.

Founder and former chief executive Dov Charney is suing American Apparel after he was fired in June last year.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.