Textile Chain American Apparel Is Broke

Under new management, American Apparel wanted to make forget its reputation of scandals. Now the company from Los Angeles had to apply for insolvency.

The downward spiral did not stop, now, the bust is American fashion manufacturer American Apparel. Headquartered in Los Angeles filed for bankruptcy protection on Monday. American Apparel wants to put so his debt by currently 300 million dollars (268 million euros) to $135 million.

Low-cost competition

Beginning of June, American Apparel had announced to close branches and lay off staff. The share price had crashed by more than 30 percent.

Company director Schneider stressed that American Apparel is not only a fashion brand with iconic, but also the largest fashion manufacturer in North America. “We go this way too, to keep jobs in the United States and maintain the ideals for which this company is.”

Belongs to the philosophy of American Apparel that is produced only in America and not, as the competition in low-wage countries in Asia. But the sales decline since 2010. European chains like H & M and Zara are cheaper and faster exchange their collections.

Crash, breakdown and sex

American Apparel was also in the past year in the headlines because of his controversial, several times on sexual harassment charges CEO and founder Dov Charney. This had founded American Apparel in Montréal in 1989 and later moved the headquarters to Los Angeles.

Provocative advertising campaigns, often with extremely young amateur models in closest Tezukuri and provocative poses are the hallmark of the brand. Alone 2014 sparked the label with a topless Muslim, A permissive Lolita ads look and Mannequins with XXL pubic hair glued-on for fierce discussions among others. Sex sells – not always!