American Apparel To Close Stores and Lay Off Workers

[Purveyor]

by Kim Bhasin
July 6, 2015 — 12:15 PM EDT

American Apparel announced on Monday that it will close stores and lay off employees as it tries to cut costs and turn around its fortunes following a turbulent era.

The cuts will save a total of $30 million, the company said, though it did not say how many shops or jobs will be affected. American Apparel has a fleet of 239 retail locations and a total workforce of around 10,000.

"We are committed to turning this company around," Paula Schneider, chief executive of American Apparel, said in a 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."

The company also warned that despite the cost-cutting measures, it may still need to raise additional capital in the next twelve months.

In April, American Apparel laid off about 180 employees, primarily in manufacturing, in what Schneider called an "ongoing process" to reassess its personnel.

more...

http://www.bloomberg.com/news/articles/2015-07-06/american-apparel-to-close-stores-and-lay-off-workers

[SamKnause]

1. Those jobs creators

need more tax cuts, loop holes, and off shore accounts.

I am sure the CEO's will be taking pay cuts and refusing

any bonuses.

Austerity is not good for the working masses or for corporations.

If customers have no money to shop with how do corporations

expect to stay in business ???

Slave labor, the unemployed, the underemployed, and the underpaid

are the majority of the population.

Austerity only amplifies the problem.

[Darb]

2. Does American Apparel make clothes in the US?

Just curious as to how they do business. With a name like that you would think they make the material and sow it together right here in the USA. Does anyone know what their business plan is or are they just pretending to be "American" and doing business as usual producing clothes in sweatshops abroad?

[reorg]

3. The label in my pants says that they do n/t

[bettyellen]

5. Not the fabric but the garments, yep. I know they used to pay a lot of the design workroom staff

Very poorly because they had them annexed to a factory and could follow the laws for factory workers. Their quality is pretty crappy too. And the former owner was sexually harassing workers.

[Hoyt]

4. That is sad, a company that makes clothing here.

http://www.americanapparel.net/aboutus/