American Apparel has recently announced that it will close stores and start to layoff employees as the company tries to save itself from a slowdown in sales and poor past leadership from top management.
The company has not yet said how many shops or jobs will be affected, but expect smaller stores in off-markets to be closed.
The newest CEO of American Apparel Paula Schneider was quoted by Bloomberg as saying:
“Today’s announcements are necessary steps to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long-term profitability.”
American Apparel has had a staggering $300 million in losses, which happened under beleaguered former CEO Dov Charney who was forced out last year.
We will keep you posted as news continues to come out, but according to Bloomberg, American Apparel will change and will be more streamlined. Shoppers should expect less stores and more of an online presence.