Is American Apparel Headed For Bankruptcy?

The controversial brand, American Apparel is raising eyebrows again but this time it’s not for something salacious.

WWD is reporting that shares fell 32 percent on Thursday after bringing in financial advisors Skadden, Arps, Slate, Meagher & Flom. While sales increased 1.5 percent to $164.5 million, shares of the company are barely reaching $1 with a closing of .66 cents on Thursday.

Experts are sighting concern about the need to resource investors and their past financial troubles as the cause of fluctuation. But the company itself is blaming issues with distribution centers. In the past the company has sought the help of investors to remain afloat but it’s looking like even with their help and extra guidance, it’s not working. If anything, it’s backfiring.

From a marketing point of view, we’re not sure hairy mannequins, rated X ads and Hurricane Sandy flash sales help the issue either.

Source: WWD

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