The hipster powerhouse, American Apparel is in HOT water financially.
The company’s debt load ballooned by $28.9 million to $120.3 million over the course of the second quarter ended June 30. It is anticipating operating losses of $5 million to $7 million during the quarter. Not the kinds of number chief executive officer Dov Charney is likely fond of.
From the beginning, Charney bucked the fashion mainstream, catering to, and arguably sculpting, molding, & creating a very difficult and particular customer-the young hipster. By producing bright, label-less basics that were easy to wear, he grew the tiny pockets of hip young thangs, into little hipster armies, MIA nations of unkempt girls with BANGS wearing the same pants as their skinny boyfriends.
Unfortunately during this incubation and growth period, the company got a bit ahead of itself. Currently, their debt outweighs its growth by a d a u n t i n g margin.
Charney is blaming the dramatic downturn on difficulties at the firm’s LA factory, which dismissed workers who could not prove to federal authorities that they had the LEGAL right to work in the U.S. Said Charney: “Replacing the workers that we lost in [our] L.A. factory was far more difficult than I anticipated,”...“In addition, because the consumer is battered, having the right product at the right time at the right place is more important than ever. But we could not respond quickly enough because of our issues with the factory.”
HA! It turns out we need you for more than just your heavenly burritos, my illegal Mexican friends. American Apparel can not survive without you!
In order to save his empire, Charney has said that he wants to cut factory costs, increase its speed to market, and improve the in-store experience. He also wants to rebrand his company as an evolving brand-one that "now has a more sophisticated product..."
......innnnnnnterestinnnnnngggg........... is this new, more "sophisticated" product for an aging, more growed-up race of hipsters? Toss a pettycoat under that miniskirt Lola n' grab your PBR, we're goin' dancin'! YEWWWWWWW!!
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