The last two years has been hard on the clothing company American Apparel. Now CEO Paula Schneider Says its business and cash position have deteriorated so badly that it is not even sure it will be able to stay in business, in its strongest warning yet to investors about its prospects.
The news comes after extensive press about the retailer’s attempts to restart its brand under new chief Paula Schneider and to distance itself from the sexual imagery it became known for during founder Dov Charney’s era.
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According to Fortune, sales have fallen 17.2 percent, and American Apparel may not have enough cash to get through the next fiscal year.
In a regulatory filing the company emphasized, “We believe that we may not have sufficient liquidity necessary to sustain operations for the next twelve months. These factors, among others, raise substantial doubt that we may be able to continue as a going concern.”