Things Aren't Getting Any Better for American Apparel
It’s not looking too good…
Things keep going downhill for struggling clothier American Apparel. The company just announced that its second quarter net losses increased to $19.4 million USD, up from $16.2 million USD only a year ago. To add fuel to the fire, American Apparel’s sales dropped 17 percent as well. However, its financial woes aren’t only caused by its sluggish sales. The high-profile lawsuit against its controversial ex-CEO and founder Dov Charney took its toll, costing the company $3.6 million USD in legal fees, just during the second quarter.
As reported previously, if the company doesn’t get its finances in check, we may be saying bye to American Apparel within a year.
