American Apparel Might Go Out Of Business If Sales Don't Go Up Soon, According To A Recent Press Release
For American Apparel and its seemingly never-ending slew of issues, the struggle continues to be seriously real. Fashionista shared the brand's recent press release, announcing American Apparel might go out of business if it can't raise enough capital this coming twelve months. The company is undergoing some substantial re-strategizing and, sadly, lay-offs are unavoidable.
It's been a rocky year for the brand due to firing its CEO and ongoing legal battles, trying to reorganize stores to boost sales, and using some less than body-positive descriptions for model casting calls. And based off the press release, American Apparel isn't catching a break anytime soon. Plans include attempting to reduce operating expenses by $30 million, and "[streamlining] its workforce to reflect a smaller store footprint and general industry conditions." There's no word on just how many lay-offs this will mean.
Even with this strategy, CEO Paula Schneider isn't 100 percent optimistic about the future. She admitted, "Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the Company will have sufficient financing commitments to meet funding requirements for the next 12 months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital."
American Apparel isn't the only brand that's found itself in deep water this year. Other mid-tier retailers like J. Crew and Gap have also had to totally shake up their sales strategies to try and stay competitive. Though no doubt unnerving for the company, only time will tell if their plans are a success.
Image Credit: @americanapparelusa/Instagram