American Apparel is a clothing retailer and manufacturer that started off in the year 1989 at Los Angeles in California. Since then, the store has built many chains across the States and has become very popular indeed.
However, sometimes even behemoth companies do face troubles and need to shrink down a notch to recover. Thus, American Apparel has decided to shut down a few of their stores and layoff a few of their staff with a view to cut down costs.
The store announced that the cuts they will be making will be equal to approximately $30 million. Considering that there are about 239 stores with about 10 thousand employees across the country, the sizeable cut down is expected.
The store suffered major losses when it was under the founder and previous CEO Dov Charney. The amount lost was about $300 million. However, the new CEO Paula Schneider said,
“We are committed to turning this company around. 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.”
Schneider may perhaps turn the company around and actually make it profitable again.
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