Let us pause for a moment of silence for hipster's in mourning everywhere.
Okay, enough.
What does it mean?
Well, it means that any number of the 260 stores they operate in 19 countries might be shut down/bought out/reconfigured. That could mean that 10,000 people the company employs could be out of a job.
American Apparel just happens to be $91 million in debt. They're going to have to sell a lot more $52 thong bodysuits, $22 Tshirts, and those $49 tight, shiny leggings they're so famous for.
Speaking of fame, American Apparel's CEO, Dov Charney, is no stranger to legal trouble as many former employees have taken him to court over sexually inappropriate behavior. The company has also been been highly criticized for its sexually charged advertising style, and its screening process for employees, which Charney himself directs.
The company opened its retail store in 2003 and prides itself on its products, which are all created in the USA. The company also has core values of vertical integration(meaning they do everything from production to advertising themselves), and even won an award for the fastest growing company on the stock market in 2003 and 2004. Unfortunately, the company is failing to file important corporate documents and stock sales are dropping by the minute.
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| Dov Charney, CEO of American Apparel |
Don't believe me? Check it out for yourself. . .
American Apparel
Dov Charney
Even though Dov Charney is a total creeper, I feel bad for the company. I think he got a little too confident. I do think he really is a good businessman with relevant, innovative ideas... but there's a reason why American Apparel is failing now and not 6 years ago. He's let it all go to his head.
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