I saw this link on the Battery Street Jeans facebook wall. Thank you Jezebel for this gem of a quote “American Apparel is probably f***ed.” Well, this all came about because American Apparel’s auditing firm resigned due to problems it discovered with American Apparels reporting, but Jezebel is quick to point out a host of other reasons why American Apparel is screwed and mercifully it doesn’t have anything to do with their US based manufacturing. The symptom is double digit percentage monthly year over year same store sales decreases. So in 2009 the each American Apparel store did about 11% less sales than they did the year before. Jezebel attributes this to terrible decision making on the part of the CEO particularly: hiring unqualified store managers, using company money to rent luxury apartments for store employees that the CEO was sleeping with, not hiring a new CFO (chief financial officer) for ages after the previous one died of a heart attack and law suits from Woody Allen and sexual harassment cases. It sounds like American Apparel used a lot of credit to fuel it’s enormous retail expansion and may soon be at the mercy of it’s creditors.

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