Struggling American Apparel Announces Store Closings and Layoffs


The latest in American Apparel’s retail struggle is that the company is shutting down several of its U.S. stores and laying people off as part of “cost-cutting measures.”

These “initiatives” are an effort to chop $30 million in spending in the next year and a half, partly to combat a series of lawsuits from fired CEO/founder Dov Charney, who’s currently under a restraining order.

In a press release Monday, American Apparel referred to Charney’s lawsuits as “meritless” and said they plan to “pursue remedies against Mr. Charney for his actions.”

In place of some of its old, dead locations, the company plans to add new and improved stores in stronger markets:

Among other initiatives, cost-cutting measures will include closing underperforming retail locations to drive productivity improvements. In connection with these store closures, the Company will streamline its workforce to reflect a smaller store footprint and general industry conditions.

There have also been recent attempts to revitalize American Apparel’s ad game.

CEO Paula Schneider says, “Our primary focus is on improving the processes and product mix that have led to steep losses over the past five years. Our customers, employees, and local communities around the world believe that American Apparel is an iconic brand that deserves to succeed. My job is to make that a reality.”

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