I was devastated by news that one of my favorite stores, American Apparel, was going bankrupt. And confused - how is that possible when atleast 60% of my modest web reporter paycheck goes to the company? I had to do some investigating to find out the truth.
After harassing several American Apparel salesclerks who insisted they had no idea whether the company would shut down or lay them off (similar to the surprise Ferocia experienced when she was laid off from her job...recession blues), I turned to the web. Here's what I found out via WWD:
Their lender, Lion Capital will revive the company provided that American Apparel makes $20 million in earnings by January 31, 2011. They will have to make $80 million by 2013. This shouldn't be a problem considering all the money I give them for basics, dresses (black/neon below at an '80's costume party, red at the office when I should've been working), swimsuits and leggings (that I share with Solange above).
Lion Capital says they love that the label, run by Dov Charney, is 'made in America' and employs 7,000 Los Angeles workers...in addition to sales reps across the country.
Do you think they can do it? Do you care? Do you want to see AA go? Discuss.