American Apparel May File for Bankruptcy

American Apparel says it may have to file for bankruptcy if sales are not improved.

Over the past twelve months American Apparel stock has traded for a low 66 cents-3.62 cents. In addition, company has lost a total of $86.3 million.

A main reason behind these lows numbers is the retailer’s sexually provocative advertising strategies. In March alone, CEO Dov Charney was sentenced with two sexual harrassment lawsuits.

Even if the company does file for bankruptcy, it may be “forced to liquidate if it can’t put together a reorganization plan or find bankruptcy financing.”

For more information visit wsj.com.

 

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