The up and down, crazy ride of a year that the fashion company American Apparel had in 2014 ended on a really low note. The company, it was revealed, cannot afford to pay its bills.
The company has postponed making payments to suppliers by as much as 60 days, according to a report in The New York Post. The company has also cut back on the hours of its workers at its Los Angeles factory.
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The latest problems are said to be the result of poor sales over the Christmas season. But the company insists that it is not having any real problems and that it is still liquid.
“Our stores are fully stocked. We’ve had a successful holiday season, ” the company said.
Another reason that American Apparel is hurting for cash was its costs from the drawn out legal battles with its former CEO and founder Dov Charney. The company also had to fend off Charney’s takeover efforts.