(Image: American Apparel)
We might soon be shopping for our low-cut V-neck tees at Urban Outfitters, because American Apparel is in some dire financial straits. Last March, the company secured an $80-million loan that helped it escape a looming bankruptcy, and yesterday, American Apparel shares dropped 42 per cent when it revealed it likely won’t meet its obligations to debtors.
In trying to fix its financial woes, the company has delayed filing its first quarter results, leading the American Stock Exchange to consider delisting the stock. In Toronto alone, there are seven American Apparels to sate the need for shiny metallic spandex tights, but same-store sales in Canada are down 15 per cent (they’re down three per cent in the States). If American Apparel goes under, where will we get our semi-pornographic advertising? Oh, wait.
• American Apparel’s latest financial mess [New York]
• American Apparel shares sink [Reuters]
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
May 20, 2010 at 2:13 pm | by Sarah PI never thought they were very Canadian and far from trendy, they expected customers to be more like users. I think if they managed to capture the idea of evolving fashion stronger their stocks wouldn’t be so weak.
May 20, 2010 at 3:04 pm | by Jatchuaoh and btw a wall of blue t-shirts with a provocative statement is not evolutionary-its barely revolutionary.
May 20, 2010 at 3:06 pm | by JatchuaThey are not Canadian, the factory is in L.A so their production costs are high (no sweatshop action there)…too bad good concept, poor execution.
May 20, 2010 at 3:08 pm | by BLBTW Hipster girls…Leggings: think of them as pantyhose NOT pants.
Actually BL…they’re made in downtown L.A. and if you look at the “wall of factory employee pics” at some of their stores you’ll see that they’re all Latinos. So, it’s not a sweatshop in the traditional sense, but A.A. is most likely paying migrant workers $4.00 an hour to make $35 t-shirts.
May 20, 2010 at 4:01 pm | by BingoamericaMaybe they should stop wasting money on their useless staff? There’s nothing quite like standing in front of 5 “workers” who are flipping through magazines and chatting about their escapades when you’re hoping to find a different size.
May 21, 2010 at 10:01 am | by NBI regularly shop at AA for basic plain T-shirts in lots of colours. That’s what the company started out doing–offering fitted plain T-shirts without any graphics. Forget about the spandex and the sleazy ads; AA does make good-quality cotton T’s.
Believe it or not, AA’s kids clothes are also very good. They actually fit my daughter, as they’re sized for a normal kid, not an elephant, as many children’s clothes seem to be.
I hope the company can restructure and continue operating, because it does offer something unique: those plain T’s.
May 21, 2010 at 2:41 pm | by ParkerWow- I hate AA and I HATE their advertising. The sooner they go under, the better. Good riddance to bad rubbish.
May 26, 2010 at 7:19 am | by EvenstarHey Bingo,
May 26, 2010 at 10:09 am | by CrazycanuckAA is widely known to pay greater than the california minimum wage which is $8.00/hr. So, I take it your knowledge of california wage and employee laws are really not up to snuff. You should know that california has a higher minimum wage than the federal requirement. This is a reason that those of us in other states get a little pissed off over bailing out California and it’s debt. AA has been a strong advocate for CIR, due its employees and its HQ location in LA.
Hey crazycanuck – ok, my bad…they make $8 an hour. So yes, they’re better than a sweat shop in Bangladesh but really, about $7 an hour better.
May 26, 2010 at 1:50 pm | by Bingoamerica@Bingoamerica:
An average American Apparel worker makes about $500 a week; I’d say that’s a lot better than Bangladesh. Shame they’re sliding downhill though; just proves sweatshops work.
May 26, 2010 at 4:40 pm | by Christiani need to start making ‘save american apparel tees’. well, i need to start printing ‘save american apparel’ on t-shirts… i buy from american apparel.
for serial tho, i loove AA. hang in there dov!
August 17, 2010 at 12:55 am | by JulianWELL I AM A VERRRRRRRRRY HAPPY AA EMPLOYEE… BEEN HERE GOING ON MY FIRST YEAR, AND I AM PRAYING THEY FIND A SOLUTION TO THE PROBLEM… GREAT PEOPLE, HAPPY ENVIROMENT, AND GREAT GREAT GREAT… I LOVE IT HERE AND HOPE TO BE HERE TILL THE END… ONE LOVE DOV…!!
September 1, 2010 at 6:26 am | by HAPPYI had no idea so many people disliked American Apparel. I also had no idea that it was called “AA” either way I actually kinda like some of the stuff they have.
September 2, 2010 at 7:58 pm | by Neutral