American Apparel Stores Closing, Locations Face Big Layoffs

According to numerous reports, retail clothing company American Apparel is planning on closing a number of locations nationwide and could be looking at a large amount of layoffs in the coming months. In a statement released this week, the company explained that this needed plan will help cut costs of around $30 million, though no official number for stores being closed nor employees being fired have been released to the media. Read more on this sad fashion news below.

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"Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next 12 months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital," the company's press release stated, according to Nylon.

The company, you might remember, faced plenty of controversy thanks to its former CEO Dov Charney, who is currently in court facing charges of sexual assault, though he was forced out of his position due to his business failures. His replacement, Paula Schneider has put this new change among many others into play in hopes to restore the company (via CNN Money).

"We are committed to turning this company around," Schneider said in a statement this week. "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."

We'll have to see how this one plays out, but for now we can only hope for the best. The company definitely needs to implement some changes, but the closings and layoffs certainly sound terrible. Do you know anybody affected by this news? Let us know what you think of this news in the comments section below!