American Apparel Warns of Bankruptcy

American Apparel is losing its appeal among young urban shoppers.

The clothing retailer warned in a regulatory filing on Thursday that it might have to file for bankruptcy unless demand picked up for its cotton T-shirts and leggings — and its overall financial situation improves.

The company, known for its provocative advertising and controversial founder, has endured a rough year.

American Apparel reported an $86 million loss in 2010, compared with a $1 million profit the year prior. Cash flows were negative, too. And the company is predicting much the same for 2011, according to its annual filing with the Securities and Exchange Commission.

Read Full Article from New York Times

- Posted: 2011-04-01 09:35:09

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