American Apparel Warns It May Go Out of Business
American Apparel has "substantial doubt" it will stay in business, the company said Monday. The clothing brand has been struggling for some time, and news it's nearing collapse came as American Apparel reported a net loss of $19.4 million for last quarter. "We believe that we may not have sufficient liquidity necessary to sustain operations for the next 12 months," the company said in a press release. It also announced plans to reorganize its debt and extend an existing line of credit from $50 million to $90 million, though it expects to post losses for the remainder of the year.