Posted by Sara Zucker on April 5, 2010 08:17 AM
Despite what CEO Dov Charney has said to reporters, American Apparel can officially join the ever-growing list of retailers struggling in today's recession. Consumers are simply shying away from expensive products. American Apparel, with its signature jersey t-shirts costing an average of $20, is poised for trouble.
The American Apparel brand has had its fair share of problems this year, including employment issues with illegal immigrants. A discovery from US Immigration and Customs Enforcement forced the company to fire over 2,000 unauthorized workers. Such a loss affected production and led to the retailer's plummeting value – at $3.16, its stock has decreased by more than 50 percent since this time last year.Continue reading...