Shock horror American Apparel are Bankrupt!
The company has filed for bankruptcy in the USA for the second time in just over a year... The brand, which at its peak had more than 200 stores including 18 in the UK, has suffered falling sales. To be honest, I'm not surprised. I've always thought American Apparel were so over priced and I think that was their biggest down fall (I could probably make half their clothes with my handy sewing machine!).
The company has filed for bankruptcy in the USA for the second time in just over a year... The brand, which at its peak had more than 200 stores including 18 in the UK, has suffered falling sales. To be honest, I'm not surprised. I've always thought American Apparel were so over priced and I think that was their biggest down fall (I could probably make half their clothes with my handy sewing machine!).
I was walking down Oxford Street and I saw all these closing down posters and up to 30% off throughout the store (which I was extremely happy about!).
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Don Charney was fired two years ago as chief executive of the company he founded in 1989 while at University. The board accused him of misusing company funds. American Apparel combined sexy, fashionable clothing with ethical production. Instead of making clothes at low cost in Asia, Charney opened a factory in Los Angeles, paid good wages and used "Made in USA" as his heading.
Gildan Activewear, a Canadian clothes manufacturer, has agreed to buy the American Apparel brand and certain assets for a whopping $66m in cash! (God ol' mighty!)
So, are you surprised about American Apparels new financial crisis or not so much?
Brandi Kristine
Photo Credit: Google Images
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