Battling Dov Charney Was Just One Of American Apparel’s Problems. Here’s Its Plan To Fix The Rest.

by MR Magazine Staff

The battle with Charney has no doubt been a distraction for American Apparel, but it is hardly the retailer’s only problem. Sales have been in a tailspin, dropping some 17 percent in the last quarter in which the company reported earnings. (It has not reported sales since filing for bankruptcy in October, but the company says the holiday season was “tough.”) Experts say consumers have relatively low awareness of the lurid accusations against Charney and the corporate fireworks that followed. And Paula Schneider, the executive who replaced Charney at the top of American Apparel, has said the retailer’s weak sales are a symptom of more routine retailing missteps: The merchandise has missed the mark with customers, stores were not placed in the right locations and often were crowded with too much merchandise. And so now, Schneider hopes American Apparel — a destination for wardrobe basics and youthful, edgy pieces such as bodysuits and crop tops — is able to proceed with a new focus on the strategy she outlined months ago to turn things around. Read more at The Washington Post.