October 9, 2010 |
Beleaguered Los Angeles clothing maker American Apparel Inc. has named a former Blockbuster Inc. executive as its acting president to help redirect the company, which appeared to be on the brink of bankruptcy this summer. In hiring Tom Casey, who was executive vice president and chief financial officer of Blockbuster from September 2007 through August of this year, American Apparel is bringing on an executive who doesn't have an apparel background but who has ample experience working with another troubled company.
October 2, 2010 |
Beleaguered Los Angeles clothing maker American Apparel Inc. said Friday that it had amended its debt agreement with Lion Capital, helping it avoid violating the terms of its loan. The London-based private equity firm is also working with American Apparel to realign its capital structure, including hiring several new senior executives. "We wholeheartedly support the company's 'Made in USA' philosophy under which 7,000 industrial workers in downtown Los Angeles are paid a fair wage," Lyndon Lea, Lion Capital founder and partner, said in a statement.
August 19, 2010 |
A day after American Apparel Inc. admitted that its future hangs by a thread, the hipster Los Angeles clothing maker and retailer was scrambling to overhaul operations, bolster sales and repair its faltering image. After warning this week that there was "substantial doubt that the company will be able to continue as a going concern," the company saw its stock fall 21.3% on Wednesday, ending at an all-time low of 81 cents. That was on the heels of a 26% plunge the day before. In recent months, the troubled company has been beset by sales declines, losses, a crackdown on undocumented workers, problems with its debt, delayed quarterly filings and, most recently, an investigation by the U.S. attorney's office in New York related to the company's abrupt change in accounting firms.
August 18, 2010 |
Troubled Los Angeles clothing company American Apparel disclosed Tuesday that the U.S. attorney's office in New York City is investigating its abrupt change of accounting firms. Deloitte & Touche resigned as American Apparel's accountant and was replaced by Marcum, the company recently announced. Peter Schey, an attorney for American Apparel, said the company received a subpoena seeking documents and other records "a few days ago. " The change of accountants "was definitely not anything sinister," Schey said in an interview.
August 11, 2010 |
Troubled clothing firm American Apparel Inc. said Tuesday that its second-quarter sales probably fell compared with a year earlier and that it expected to report a loss. In a filing with the Securities and Exchange Commission, the Los Angeles company also said that it was "unable, without unreasonable effort and expense," to file its quarterly report on time for the three months that ended June 30. The company blamed its weak total sales on a decrease in retail sales, although it didn't provide specific figures.
June 25, 2010 |
Cash-strapped clothing maker and retailer American Apparel Inc. got a boost from Los Angeles billionaire investor Ron Burkle, who disclosed Thursday that he had acquired a 6% stake in the company saddled by debt and weak sales over the last year. According to a filing with the Securities and Exchange Commission, Burkle reported he had purchased 4.3 million shares in the open market for $5.9 million between June 10 and Monday. The filing said Burkle made the purchase "because, in his opinion, such shares were undervalued."
May 20, 2010 |
Problems are mounting for American Apparel Inc., the popular Los Angeles apparel maker and retailer that has been plagued by debt constraints and weak sales since last year. On Wednesday, the company reported disappointing first-quarter preliminary results and said it expected problems with its debt, sending its shares plummeting 41% to its lowest price in more than a year. It also declined to provide a financial outlook for the year because of continued uncertainty about its business.
April 2, 2010 |
American Apparel Inc., the Los Angeles clothing maker and retailer known for its colorful fashions, racy advertising and outspoken chief executive, is fraying at the edges. The company's fourth-quarter profit plunged 21% to $3.05 million, and its stock closed Thursday at $3.16 -- less than half its high of $6.97 late last April. By comparison, rivals such as H&M, Gap and Urban Outfitters in the young-adult sector are performing well. Analysts say that though competitors rode out the recession by selling cheaper clothes, the pricey urban-chic clothier offered few discounts or deals.
CALIFORNIA | LOCAL
December 20, 2009 |
It was a holiday sale for a singular group of beneficiaries -- illegal immigrants who had been thrown out of work. "It makes me feel less guilty for buying all this stuff," said Dolores Arellano, 19, one of hundreds of shoppers who thronged Saturday to the parking lot of American Apparel in downtown Los Angeles. The trendy, L.A.-based clothier sponsored the "Justice for Immigrants" event to benefit some 1,600 employees let go in recent months after federal inspections uncovered discrepancies in their immigration documentation.
October 9, 2009 |
The reality television show "Project Runway" this season is putting the spotlight on Los Angeles, where designers toil in a loft downtown, competing to win $100,000 to start their own clothing line. The local industry could use the boost. L.A.'s once-flourishing garment design and manufacturing industry is shedding jobs as quickly as a mohair sweater loses its fur. Weak U.S. consumer spending is generating less demand for the services of the people who stitch, cut and sew clothing in Los Angeles County.