New York Times

it might not have enough liquidity to sustain itself over the next year.

Known as much for its racy ads and outre behavior of CEO Dov Charney as its inexpensive leggings and T-shirts, American Apparel has expanded rapidly since going public in 2007 and operates about 260 stores in 19 countries.

a place that has such a niche to only sell basics, would be doing great during the times where people are pinching pennies on extravagant items and would rather spend money on things that they could use everyday.

One thing that stuck out in my mind about American Apparel and helped me understand the reason the retailer is going through such a hard time, is the level of competition they are facing. A shopper of American Apparel myself, I see things in there that I can get from other stores for much cheaper. They may not be the best of quality but they are worth the 5 dollars rather than the $15 I would spend on a pair of leggings at American Apparel. On a wholesale aspect, Joseph Robinson a t-shirt designer, stated, “for wholesaling, I have found a few different companies that have the same quality and feel as American Apparel, but are 2 or 3 bucks cheaper than them for wholesale cost”. The competition is definitely out there for the retailer.

a lot of retailers that have had to raise prices in order to keep up with the margins and to produce an income, but we are speaking about basics in a store that nothing ever goes on sale. The quality of their products are not that spectacular.

American Apparel has figured that the niche of basics will not hold them over during the rough times

But instead of hurting the company's brand, controversy has seemed to work in its favor, turning American Apparel into an iconic fashion brand that created a cult-like status with teens and young adults.

AA’s amazing growth is aided by the attention the brand gets for being “sweatshop free.” Indeed, all of AA’s products are produced in the US under such sweat-free conditions as... [continues]

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