Monday, August 16, 2010
Is it the end for one of America's favorite retailers, American Apparel. There have been a lot of rumors flying around about the stores sales are down and the huge hiring of illegal immigrants.
Here is a little more insight on the situation via Black Book "Could It Be The End For American Apparel?"
American Apparel is facing adversity that could leave the mega retailer high and dry. Fourth quarter sales are down 23% as of this past Friday. Apparently in the past year and a half American Apparel has had difficulty keeping “their shelves fully stocked thanks to the vise-like grip on cash kept by Lion Capital, [a major stake holder and] the London-based investment firm whose March 2009 financing deal saved Charney’s bacon.”
…when the feds raided American Apparel’s Los Angeles warehouses last summer and “charged that one third of the workers at the retailer’s Los Angeles factory were illegal immigrants,” the loss of so much of the company’s workforce was crippling. Despite Charney’s longtime championing of workers’ rights, it’s the hiring of illegal ones that may be his downfall…
Well I hope the rumors aren't true, but now a days in this shitty economy....ya never know. smh