American Apparel Shut Down?


You read it right the clothing store American Apparel founded in 1989 by Dov Charney just might be closing it’s doors for the final time. As the numbers come out for the store it isn’t looking too well. Here are the numbers provided by

  • American Apparel reported their sales were down by 17.2%.
  • A net loss of $19.4 million.

What is next for them? American Apparel announced that it is planning to extend an already existing credit line of credit from $50 million to a whopping $90 million with Capital One. With these stopgap arrangements, American Apparel is staying confident and are trying their best to keep doors open and provide only American Made clothing for the the rest of the financial year. The scheduled interest payment was due on October 15 with the amount being close to $14 million, as reported by MSN. Tragically, the store only has $6.8 million in cash on hand and they aren’t really able to give out salaries. Not only are they slowly closing their doors they are moving towards bankruptcy. Here is a statement by the company provided by

“The decline in comparable sales was attributable to the lack of new style introduction for the spring and summer selling season. We believe that we may not have sufficient liquidity necessary to sustain operations for the next twelve months. These factors, among others, raise substantial doubt that we may be able to continue as a going concern”

Now those are the facts now here is my opinion:

Even though American Apparel is one of my favorite stores their clothing is way too high priced for the most simplest things. In a time where folks are trying to save money….NO ONE WANTS TO BUY A SIMPLE WHITE T-SHIRT FOR $16.00!!!! Simply…..their competitor H&M has almost the same shirt for $5.99. Which one would you get? The one that saves you money correct? Oh alright. Now, on the flip side where are those bodysuit loving females going to buy their bodysuits? I do not know anyone else who sells them off the top of my head. Do you? Didn’t think so and I am talking about mainstream stores. They are the store to buy vintage clothing even though they are replicas and aren’t the real things but they sure do look and feel like the old stuff. Hey, at least they live by their “Made in the USA”, “sweatshop free”, and “fair wages” staple. 

(Source: American Apparel)

(Source: American Apparel)

(Source: H&M)

(Source: H&M)











Overall I am praying for American Apparel because I live for the 75% off sale. That’s when I actually find some pants in my size. That’s all I have for now…..I’ll keep you all updated when I can. They do plan on bringing down cost by $30 million which is going to be some major downsizing maybe closing of some more stores.


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