American Apparel has publicly worried that it might not make it through the year and reports allege that the company is about to go bankrupt. The latest bit of news involving American Apparel does little to quiet those concerns as the company has reportedly pushed back its quarterly filing after losing $19.4 million in the most recent three-month period, according to WWD.
The new total losses is a jump from the $16.2 million posted over the same period a year ago. The company is also making less money than ever before; its reported earnings dropped 17 percent to $134 million. Due to its dire financial state, American Apparel is looking to find an alternative way to settle up the $34 million it owes the federal government. The company is in "ongoing discussions" with Capital One in hopes of finding a potential waiver for the amount due, WWD reports.
The losses are partially due to Dov Charney and the lawsuits he has brought against the company since being fired. The legal battles have cost American Apparel $3.6 million, according to WWD. If AA does indeed go under, Charney has been named as a potential buyer for the company.