The future of American Apparel doesn’t look as bright as their fluorescent leggings and body-cons. The eccentric Dov Charney, who built American Apparel Inc. from his footless plush pantyhose up, may be forced to relinquish control of the company due to bankruptcy and liquidation. According to the New York Times, American Apparel’s shares have fallen more than 66 percent over the last year and has over $91 million in debt overall. Lenders are starting to shy away from the company, leaving the clothier little to no money to continue operating another year. Any new investor would surely replace the flamboyant Charney, who has been known to hire on loose conditions and has allegedly been blamed for sexual harassment of former employees. Without the Canadian chief executive’s colourful and imaginative mind, we may end up with a completely different company. “I would not be at all surprised if it was recapitalized and came back on the other side as a smaller, more focused company,” Mr. Johnson said, describing the possible outcome of the company operating under new management.
However, the defiant Mr. Charney will not surrender that easily. With one last attempt to improve sales, Charney has decided to reposition the company’s clothing style and image. Earlier this month, he declared that hipsterdom was “over”, and that the company was planning to move away from the risqué advertisements and the “odd ball” vibe towards a more preppy feel. But why? The hipster trend has single-handedly fuelled his expansion for the past three years, gathering a crowd of individuals that fed off the originality of the company’s clothing. However, Charney strongly believes that this change might be able to save American Apparel and restore it to its original state. He is moving his product with its aging customers, exchanging thong bodysuits for preppy blazers. “American Apparel once sold new and fresh-styled clothing but that reputation has faded” Charney commented. If all goes according to Charney’s plan, we will have yet another clothier that sells unoriginal garments in an overcrowded, monotonous market. Sorry, hipsters!
