American Apparel warns it may go out of business

LA Times ^ | 8/17/15 | By Shan Li

[ChildOfThe60s]

With sales sliding and cash dwindling, the Los Angeles company warned Monday it may not have enough liquidity to keep operating for the next 12 months, according to a filing with the Securities & Exchange Commission. The losses may continue through the rest of 2015, the company said.

All these factors, American Apparel said, "raise substantial doubt that we may be able to continue as a going concern."

The warning comes as the company reported a second quarter in line with its original estimates filed with the SEC last week. The quarter was marked by bad news: Sales fell 17% to $134 million and net loss widened to $19.4 million, or 11 cents a share.

[ChildOfThe60s]

As a wholesaler I have never sold their products. Sleazy company, sleazy looking models, and they support illegal aliens invading us. Oh, and I'm not impressed with their products. I have plenty other clothing suppliers that are superior in every way to them.

[sarasota]

American Eagle is booming.

[Politicalkiddo]

I like their stuff, but they charge so much. Who can afford it? I tried getting some shorts there, once. It was $55 for something I could’ve gotten elsewhere for a fraction of the price.

[LS]

Am I wrong, but doesn’t American Apparel sell mostly stuff made in China and Vietnam?

[Squawk 8888]

sleazy looking models

All of their "models" are regular company employees. The sleazeball ex-CEO did most of the photography.

[Squawk 8888]

Nope, they have a factory in the US and their tagline is, “Made in downtown LA”.

[LS]

Wow. Good to know!

[houeto]

All of their "models" are regular company employees. The sleazeball ex-CEO did most of the photography.

WOW!!! I just Binged their ads. I had no idea. Waaaay NSFW!

[WayneS]

Okay.

[relictele]

Yep and yep.

‘American’ Apparel is as American as Beijing.

[relictele]

ps - made in America has many meanings, from final construction/sewing/assembly etc.

[arthurus]

Start a line of CSA themed goods. Make flags. The market is wide open for that since so many others have pulled out of it for non-market reasons.

[Mr. Jeeves]

I like their stuff, but they charge so much. Who can afford it? I tried getting some shorts there, once. It was $55 for something I could’ve gotten elsewhere for a fraction of the price.

That's what "Made in the USA" costs - even coming from the sweatshops full of illegals in L.A. $55 isn't out of line at all - considering the cost of government the USA imposes on domestic manufacturers, it's actually pretty cheap.

[Politicalkiddo]

I never saw any of their ads before. Now, I wish I hadn’t.

[Politicalkiddo]

I agree. But I’m not rich enough to buy things made here. That’s why it seems outrageously priced to me. But, economically, it makes more sense for AA stuff to be overpriced compared to products made by companies like Nike.

[Popman]

All of their "models" are regular company employees.

I looked at their website and their "models" though not ugly, most are plain looking and the photography sucks...

I thought the idea of using professional models is to subconsciously make women think if they buy this clothing item they will look like the model...

No wonder their sales are dying...

[Buckeye McFrog]

Warning or promising?

[ChildOfThe60s]

I haven’t looked at their retail ads in a long time. I’m going by the last (wholesale) catalogs that I had. I quit looking at them.

Some of my counterparts in my business have complained about inconsistent quality. I can’t speak to that, having never sold any of their stuff.

[ChildOfThe60s]

I deal with a good USA made tee company in VA called Jensen Apparel, I've sold boatloads of their shirts and my customers are always happy with product & price.

I am a wholesaler, but they do have a retail web site. IMO their prices are very good. Truly not much more than imported.

Good people, check them out.

https://www.jensenapparel.com/home.php

[ChildOfThe60s]

See my post #19