The company known for their provocative garments and sexed-up ads has been having lackluster sales as of late despite their unique marketing and sexy campaigns. Some may remember just a short while back the company ran a campaign that asked customers to send in the best pics of their bottoms wearing the companies undergarments. Despite these efforts, the company still reports losses over the last few quarters according to MSNBC:
The company, known for its signature T-shirts, sexualized ads and controversial chief executive, recently reported that its quarterly operating loss had more than quadrupled from a year earlier, and warned that it risks defaulting on a credit agreement. The news sent its stock price, already trading in the low single digits, tumbling. The Los Angeles-based company also has warned that it risks having its stock delisted from the Amex because it has repeatedly been tardy with its financial filings.
“American Apparel is unique because they’re on the cusp of a total collapse,” said Howard Davidowitz, chairman of the retail consulting and investment banking firm Davidowitz & Associates.
“Our company in the past has been through these types of issues before and it’s never really presented us with any particular difficulties in running our business,” CEO Dov Charney said in a conference call with analysts last month after the company reported a $17.6 million quarterly operating loss on sales of $121.8 million.
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