Amid all the movement around American Apparel attempting to revitalize its image and its ongoing saga with former CEO Dov Charney that included a bunch of his lewd actions being released, Fashionista reports that the brand might not survive 2015 if it doesn't find some new funding to keep its head above water.
Naturally, the brand wants to cut costs, but said cuts are going to manifest themselves in the form of a ton of layoffs at stores and AA HQ and store closures as the company already bombed out more than $25 million in Q1 of 2015. The company plans to close underperforming stores and add new ones in locations that are performing well. How many of these stores are actually performing well, we're not totally sure. The company issued a general statement about the actions that basically amounts to "Welp, we're screwed if we don't have any help." You know, the same sort of resignation that you feel when you're about to present a project in front of the class that you are most definitely not prepared for:
Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next twelve months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital.
So, the big question is: Who the fuck is going to be the one to ante up and put American Apparel on their back? Kanye didn't close that Karmaloop deal. Just sayin'.
