×
92 867
Fashion Jobs
NORDSTROM
Asset Protection - Security Ambassador - Willow Grove Park Rack
Permanent · Willow Grove
NORDSTROM
Asset Protection - Agent - Orem University Crossing Rack
Permanent · Orem
NORDSTROM
HR Business Partner, Supply Chain - Portland, or - Hybrid
Permanent · Portland
NORDSTROM
Asset Protection Agent - Victoria Ward Village Rack
Permanent · Honolulu
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Salisbury
GAP
Asset Protection Service Representative - Gloucester Premium
Permanent · Gloucester Township
GAP
Asset Protection Service Representative - Atlantic City Tanger
Permanent · Atlantic City
NIKE
Materials Costing Manager
Permanent · Beaverton
CONVERSE
Retail Operations Manager
Permanent · Boston
NIKE
Art Director
Permanent · Beaverton
NIKE
Digital Loss Prevention Data Analyst - North America Nike Direct Digital Commerce (Remote Option*)
Permanent · Beaverton
NIKE
Director, Technical Product Management – Tech Ops Resilience (Remote Option*)
Permanent · Beaverton
NIKE
Director, Technical Product Management – Enterprise Service Management HR Service Delivery
Permanent · Beaverton
NIKE
Content Manager
Permanent · Los Angeles
CONVERSE
Senior Financial Analyst, Global Business Planning
Permanent · Boston
NIKE
Tech Finance Analyst
Permanent · Beaverton
NIKE
Nike Security Manager – Foothill Ranch
Permanent · Lake Forest
NIKE
Nike Security Manager – Los Angeles
Permanent · Los Angeles
NIKE
Lead Technical Product Manager, Privacy (Remote Option*)
Permanent · Beaverton
NIKE
Finance Data Product Owner
Permanent · Beaverton
NIKE
Senior Technical Product Manager (Remote Option*)
Permanent · Beaverton
NIKE
Global Store Operations Manager
Permanent · Beaverton
By
AFP
Published
Jul 6, 2015
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Facing sales slump, American Apparel to close stores

By
AFP
Published
Jul 6, 2015

American Apparel, the chain that boasts of "Made in the USA" fashions, said Monday it would close some stores and cut jobs as it fights slumping sales.

The Los Angeles-based company, which is embroiled in a legal battle with its former founder and chief executive Dov Charney, said it planned to slash $30 million in spending over the next 18 months.


To get there, the company said in a statement it would close "under-performing" retail locations, resulting in job losses, without providing details on numbers or locations.

The company, which makes its own clothing in downtown Los Angeles, had 239 stores in about 20 countries, including 135 in the United States, at the end of March.

Sales have been declining since 2010, leading to a series of steep losses.

American Apparel said it would launch a redesigned fall line of clothing for both women and men.

"We are committed to turning this company around," said Paula Schneider, the recently appointed CEO, in the statement.

"Today's announcements are necessary steps to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long-term profitability," she said.

But the company warned that even if it boosts revenue and cuts costs, it still would need to raise additional capital to meet funding requirements for the next 12 months. "And there can be no guarantee that it will be able to raise such additional capital," it said.

In May, American Apparel had announced it wanted to raise $10 million but it has not revealed whether the goal was reached.

US clothing retailers have been under pressure from the abundance of cheap imported merchandise and the popularity of European rivals such as H&M and Zara that specialize in fast-changing, low-priced inventory.

The stronger dollar has chipped away at America Apparel's foreign revenues, and the rise in online shopping also has diminished the attraction of brick-and-mortar stores.

One of the company's rivals, Gap, announced in mid-June that it would close 175 namesake stores in North America, most of them this year, and a limited number in Europe.

American Apparel has also been in a legal battle with Charney, who was ousted in June 2014 amid allegations of sexual harassment.

Charney and his associates have filed about 20 lawsuits against the company, which he founded in Montreal in 1989.

"The company believes these cases are meritless and intends to vigorously defend such actions and, where possible, pursue remedies against Mr. Charney for his actions," American Apparel said Monday.

Shares in American Apparel plunged 10.2 percent to 45 cents in late-afternoon trade on the New York Stock Exchange.

Copyright © 2022 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.