American Apparel unravels
August 22, 2010 2:10 AM Subscribe
posted by acb (137 comments total)
4 users marked this as a favorite
American Apparel, the clothing company which became synonymous with the "hipster" look of the 2000s, is facing bankruptcy
American Apparel courted controversy with its pornography-inspired ads, which held a permanent place on the back of VICE Magazine, and the equally sexualised persona of its founder, Dov Charney. It was at one point the largest clothing manufacturer in the United States, due largely to the fact that other companies had shifted their production offshore. Now its auditor has resigned, citing "material weaknesses" in the firm's financial controls, and the firm's stock is facing delisting.
Charney himself has recently disowned the hipster style his firm became synonymous with, and announced an intention to switch to making more conservatively styled clothing for an older market. Whether that's enough to save his company is uncertain.