“…there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next twelve months without raising additional capital…”
Normcore retailer American Apparel is in severe financial crisis. In its latest press release, AA CEO Paula Schneider has announced an approximately $30 million cost-cutting initiatives and a redesigned fall merchandise line to revive the company’s downhill profits rate. It is also the company’s first-time-ever since its launch in 1989 to focus on its fall collection.
The retailer is extremely honest about their financial situation, Schneider states that the AA team is “committed to turning the company around” and hoping to rescue AA from its steep losses over the past five years. AA has also announced a major change in its leadership team in hope of a miraculous rebound.
Video: “American Apparel is cutting $30 million to save itself” from Touch Vision