American Apparel May Not Make It Through The Holidays
The largest clothing manufacturer in North America is hanging by a thread. American Apparel, less than nine months after emerging from Chapter 11 and losing sales and bleeding cash, has been slashing payroll at its Los Angeles factory — but it may not be enough to keep it afloat through the holidays. Working with a restructuring expert, the company, famous for its provocative ads and Made in the USA apparel, has had talks with licensing firms and could agree to be sold in a deal that would precipitate another trip through bankruptcy court. That the once-thriving apparel maker is flailing so soon after reorganization is a black eye to US manufacturing. Whispers around Los Angeles suggest that the company will soon exit its downtown factory, once home to 4,000 jobs, and either drop manufacturing all together or move to a state where labor is less expensive — say, North Carolina — where it would contract out its work. Read more at New York Post.
