Glib headlines ("American A-Peril?") no longer belong on stories covering American Apparel's grimmer and grimmer financial state. Just two weeks after filing its second-quarter results, showing alarming net losses of $14.7 million, the company posted third-quarter losses of $9.5 million—and a drop in sales by 10.5 percent, WWD reports.
Last month, Tom Casey (formerly of Blockbuster Inc.), who was recently instated as American Apparel's new acting president told WWD of the company's plans to get back on its feet: "We expect to improve financial results by supporting the brand with a customer-focused supply chain, leveraging our speed to market capability with lower distribution costs. We are optimizing our retail store base through investments in technology and improved allocation while lowering our lease costs.”
CEO Dov Charney adds that the company will boost sales of basics, as well as improve its manufacturing efficiency (the lack of which, was said to be reason behind the third-quarters flagging sales). Given the risks the company runs of falling out of compliance with several of its loan agreements, there's little room for fooling around—and yet it's still posting ads featuring ladies' exposed rear bottoms.
