American Apparel Bankruptcy

[re7ard1337]

American Apparel may not have enough money to make it through the year, so says this article. (http://www.financialpost.com/news/American+Apparel+hipster+darling+mo re+bankruptcy+looms/3419479/story.html) I posted this news just because many bands print their t-shirts on AA.

[crackedthesky]

And this has... what to do with politics?

[sjb2k1]

more importantly, should i get this shirt?
http://ep.yimg.com/ca/I/yhst-75848739727244_2116_1544728

[PmCarlay]

Recessionnn

[crackedthesky]

The article doesn't even really say that. Most likely, the dude sells the company to a bigger company, and band shirts are still $19 at HotTopic.

[Mandee, darling]

more importantly, should i get this shirt?
http://ep.yimg.com/ca/I/yhst-75848739727244_2116_1544728

Yes. Where did you find that?

[sjb2k1]

Yes. Where did you find that?
http://www.fivefingertees.com/pub-crawl.html

i picked red because i have way too many green t-shirts

[Mandee, darling]

http://www.fivefingertees.com/pub-crawl.html

i picked red because i have way too many green t-shirts

I think you picked a good color, and thanks!

[Jake Gyllenhaal]

And this has... what to do with politics?

Capitalism. If American Apparel goes bankrupt, it's just a sign of the market. Not enough consumers. Obviously they didn't benefit from the Bush tax cuts.

[sjb2k1]

I think you picked a good color, and thanks!
awesome, thank you

[Mandee, darling]

awesome, thank you

You're welcome! :-)

[crackedthesky]

Capitalism. If American Apparel goes bankrupt, it's just a sign of the market. Not enough consumers. Obviously they didn't benefit from the Bush tax cuts.

Well, when my choices are $20 for a shirt from American Apparel designed to look like some faded logo of a product that I don't even know whether it really exists because those are "in," or a $3 shirt from Wal-Mart I find comfy and has a cool graphic I like on it, I'd probably go with the latter even if Bush was jamming Benjamins up my ass :shrug:

[Jake Gyllenhaal]

Well, when my choices are $20 for a shirt from American Apparel designed to look like some faded logo of a product that I don't even know whether it really exists because those are "in," or a $3 shirt from Wal-Mart I find comfy and has a cool graphic I like on it, I'd probably go with the latter even if Bush was jamming Benjamins up my ass :shrug:

That's the nature of capitalism in terms of you as a consumer. You have a choice as to what to buy. Your choice affects both Walmart and American Apparel employees.

[crackedthesky]

That's the nature of capitalism in terms of you as a consumer. You have a choice as to what to buy. Your choice affects both Walmart and American Apparel employees.
Not likely. WalMart's money is pretty much infinite, at this point. If they fire anyone, it isn't because of money troubles.

[Jake Gyllenhaal]

Not likely. WalMart's money is pretty much infinite, at this point. If they fire anyone, it isn't because of money troubles.

When it comes to businesses, every penny counts.

[crackedthesky]

When it comes to businesses, every penny counts.

I disagree.
Let's say a business is just a little bit short on cash. They'd need an extra $50,000 a year to keep 5 employees on, or they "have" to fire them.
Because of last term's profits, the company CEO gets a raise as well as a bonus of $1.5 million dollars.

What do you think Mr. CEO will do?

Bye-bye five employees, hello Mr. CEO's third yacht.

[re7ard1337]

Recessionnn

Capitalism. If American Apparel goes bankrupt, it's just a sign of the market. Not enough consumers. Obviously they didn't benefit from the Bush tax cuts.

thanks for understanding why this belongs in politics.

Well, when my choices are $20 for a shirt from American Apparel designed to look like some faded logo of a product that I don't even know whether it really exists because those are "in," or a $3 shirt from Wal-Mart I find comfy and has a cool graphic I like on it, I'd probably go with the latter even if Bush was jamming Benjamins up my ass :shrug:

perhaps, but there is an entire market that disagrees with you, fashion sells better than almost anything.

[crackedthesky]

perhaps, but there is an entire market that disagrees with you, fashion sells better than almost anything.

And yet the link on the first post is there...

[re7ard1337]

And yet the link on the first post is there...

you can't argue that most companies do well off of clothing. one example of AA falling through does not well reflect the entire industry, you'd be a fool to say so. there is so much more that could have gone into AA's downfall, such as their risque advertising, lack of sweatshop use, or sexual harassment cases.

[crackedthesky]

you can't argue that most companies do well off of clothing. one example of AA falling through does not well reflect the entire industry, you'd be a fool to say so. there is so much more that could have gone into AA's downfall, such as their risque advertising, lack of sweatshop use, or sexual harassment cases.

Then thank God I didn't say anything even remotely close to any of that.

Haha, really, I don't even know why I was quoted, your post doesn't reflect what I was arguing.

Besides, I could be wrong since I only skimmed the article, but AA's troubles aren't profit-related, they're due to bad loans and bad business decisions :shrug:

[<*)))><]

Is this what happens when we pull out of the middle east?

[sjb2k1]

the only time i buy AA is if there's a band shirt i want that they happened to have printed on those shirts

[rawspinner]

Recessionnn

hey, you listen to good music. Let's be friends.

[shawnPLAGUES]

I really like AA clothes, especially their tanks and hoodies. They are incredibly comfy.

Their mustache ski mask stole my heart at first sight.

http://www.nerve.com/CS/blogs/modernmaterialist/2009/02/mustache%20mask.jpg

[Juan Jose]

that blows. they have nice basics

[yves.]

perhaps, but there is an entire market that disagrees with you, fashion sells better than almost anything.

you can't argue that most companies do well off of clothing. one example of AA falling through does not well reflect the entire industry, you'd be a fool to say so. there is so much more that could have gone into AA's downfall, such as their risque advertising, lack of sweatshop use, or sexual harassment cases.

actually, the fashion industry has taken a huge hit from the recession. high end fashion conglomerates such as LVHM (owner of luis vuitton, fendi, marc jacobs and givenchy to name a few) have lost a great deal, while cheaper retail companies like forever 21 and H&M have seen a rise in profits due to their affordability and 'trendiness'. many of the conglomerates' losses have forced the conglomerates to cut funding for their companies even though they make so much money, which means their lines cannot fully flourish like they would during a normal or profitable economy. this is why christian lacroix's haute couture line had to be dropped while he was still with the falic group.

[zion the lion]

So...their boobie advertising didnt work in the long run?

[Roboman]

actually, the fashion industry has taken a huge hit from the recession. high end fashion conglomerates such as LVHM (owner of luis vuitton, fendi, marc jacobs and givenchy to name a few) have lost a great deal, while cheaper retail companies like forever 21 and H&M have seen a rise in profits due to their affordability and 'trendiness'. many of the conglomerates' losses have forced the conglomerates to cut funding for their companies even though they make so much money, which means their lines cannot fully flourish like they would during a normal or profitable economy. this is why christian lacroix's haute couture line had to be dropped while he was still with the falic group.

And yet for some reason, I'm fine with the first bolded part. And I have no idea what you're saying in the second bolded part, but I also think I'm fine with it.

Anyway, I love Fullbleed and they print on AA, so as long as FB is fine I don't care too much.

[Skadrist]

Am I the only one who thinks that their CEO looks like a serial killer?

[troubledbyinsects]

This company is run so poorly, this comes as no surprise to me. But it still sucks, I like their shirts.

[EchoPark]

I will still buy their plain T-shirts for $5.00

[chrislauren]

that blows. they have nice basics

This. Last year i bought a hoodie from them and i wore it pretty much every single day. so comfy.

[SandManTEND13]

I just bought a lot of their shirts for college! They should not go out of business

[JordanBuell]

sucks. i love their shirts and hoodies.

[brokenwings]

it would be a shame. they have great products and i own a bunch of them. i also like the fact that their stuff isn't being manufactured in some chinese sweatshop and is still affordable. the news actually really surprises me. i've seen so many kids running around in AA zip hoodies here lately

[Kozzy333]

Incredibly over-priced clothes.

[pennie]

50 euro for a hoodie ,30 euro for plain t shirt?Prices like that wont do you any favours.

[shit stroll]

Incredibly over-priced clothes.
not really. compare their prices with other sweat shop free brands.

[DanielJames]

Well, when my choices are $20 for a shirt from American Apparel designed to look like some faded logo of a product that I don't even know whether it really exists because those are "in," or a $3 shirt from Wal-Mart I find comfy and has a cool graphic I like on it, I'd probably go with the latter even if Bush was jamming Benjamins up my ass :shrug:

I agree. It's all about the $7 v-necks at Target! $20 for a solid color t-shirt is ridiculous (although I will admit that in my younger days I was even more idiotic buying them).

[Kozzy333]

not really. compare their prices with other sweat shop free brands.

Please link me some sweat shop free brand websites. I don't know which ones are sweat shop free.

[deFobbed14yrs]

I got a shirt thats heat sensitive and it changes from blue to white when it gets hot. its so coool

[brokenwings]

not really. compare their prices with other sweat shop free brands.
exactly

[Maiaophilia]

American Apparel may not have enough money to make it through the year, so says this article. (http://www.financialpost.com/news/American+Apparel+hipster+darling+mo re+bankruptcy+looms/3419479/story.html) I posted this news just because many bands print their t-shirts on AA.

maybe if they didn't charge insane amounts of $$$ for plain basic clothes they wouldnt go bankrupt.

I know everyone has to make a profit but $40+ for a hoddie?! and $20 for a plain v-neck shirt. I can get a whole pack of v-neck shirts for $8 at Target.

[<*)))><]

I really like AA clothes, especially their tanks and hoodies. They are incredibly comfy.

Their mustache ski mask stole my heart at first sight.

http://www.nerve.com/CS/blogs/modernmaterialist/2009/02/mustache%20mask.jpg
http://declubz.com/blog/wp-content/uploads/2009/03/beard-head-249x300.jpg

This is way cooler

[Jimmy_Love]

Thing is I don't think AA's downfall can be really attributed to the thoughtless rapid expansion of the stores rather than declining sales. I mean I remember when everyone thought it was a big deal that there was an AA store in Philly, but now they're everywhere. I think AA didn't seem to consider that just because they made their products more available doesn't necessarily mean that their sales would increase. What I'm saying is now the kid in Baltimore doesn't need to drive to Philly to buy his v-neck, he just has to walk down the road. Sales are just being spread out not increasing.

[Manicapathy]

Just wait for the going out of business sale, buy a shit ton of stuff.

[Manicapathy]

Thing is I don't think AA's downfall can be really attributed to the thoughtless rapid expansion of the stores rather than declining sales. I mean I remember when everyone thought it was a big deal that there was an AA store in Philly, but now they're everywhere. I think AA didn't seem to consider that just because they made their products more available doesn't necessarily mean that their sales would increase. What I'm saying is now the kid in Baltimore doesn't need to drive to Philly to buy his v-neck, he just has to walk down the road. Sales are just being spread out not increasing.

Why didn't he just buy it online to start with?

[xshady121]

Sucks for me and my tons of American Apparel stock.

[crackedthesky]

Haha, did any of you guys read the article?
They aren't going out o business. Most likely, the current owner will have to sell the company to a bigger company. They aren't even bankrupt, they're just in debt and can't get any loans because a lot of people believe they'll go bankrupt within the year.

[zion the lion]

Haha, did any of you guys read the article?
They aren't going out o business. Most likely, the current owner will have to sell the company to a bigger company. They aren't even bankrupt, they're just in debt and can't get any loans because a lot of people believe they'll go bankrupt within the year.

...so if they cant get any loans, they probably are going to be bankrupt within the year, then this thread's title is probably right.

[crackedthesky]

...so if they cant get any loans, they probably are going to be bankrupt within the year, then this thread's title is probably right.

My qualm isn't with the title, it's the people posting like the company is already gone. Even if they do go bankrupt, the most likely scenario is that a bigger company will aquire them.

[x togepi x]

maybe he'll sell the company to someone who isn't a scumbag like he is. hope they don't go out out of business or get bought out by someone like Nike though.

[zion the lion]

My qualm isn't with the title, it's the people posting like the company is already gone. Even if they do go bankrupt, the most likely scenario is that a bigger company will aquire them.

Because it will probably be gone, they're too expensive, they had a ridiculous advertising strategy...if nobody is going to loan them the money then they will be bankrupt. And really if some company buys them out, they arent going to be the same.

[x togepi x]

i doubt they'll be gone. The brand itself is popular, management just didn't have it all together. Someone will buy it out just so they can sell to young hip kids.

[crackedthesky]

Because it will probably be gone, they're too expensive, they had a ridiculous advertising strategy...if nobody is going to loan them the money then they will be bankrupt. And really if some company buys them out, they arent going to be the same.

...okay? Not really sure what you're getting at. You're arguing against points I never made.

[zion the lion]

...okay? Not really sure what you're getting at. You're arguing against points I never made.

American apparel as it is, is basically deadish.

[coma]

The shirts are so soft, though.

[crackedthesky]

American apparel as it is, is basically deadish.

Even if you were right, you'd be wrong.


That is to say, even if the company goes "dead" because of this, it won't happen for another year or so. So my original point still stands. Again, you're arguing against things I never said or even implied.

[<*)))><]

i doubt they'll be gone. The brand itself is popular, management just didn't have it all together. Someone will buy it out just so they can sell to young hipster kids.

Fixed

[RushAndAPush]

y-SVezN9Fns

[BornUnderPunches]

ok

[zbrmike79]

if this means that cute girls stop wearing american apparel clothes i'll kill myself.

[spiffa0]

I like buying 4 shirts that are identical to an AA shirt for the price of one AA shirt.

[Jimmy_Love]

Why didn't he just buy it online to start with?

I dunno, but I swear this is how it is. I had a friend who worked in the philly store when it first opened, he once told me about kids that came from the Cleveland area who drove to their just for AA. I believe he even asked if they knew about the website.

[x togepi x]

Fixed

nah, i know a lot of people who aren't hipsters who love AA, but yeah their ad campaign is hipster as fuck.

[<*)))><]

nah, i know a lot of people who aren't hipsters who love AA, but yeah their ad campaign is hipster as fuck.
Everything has exceptions.

[wrppdarndyrfngr]

they are losing cash because the INS raided their factory and found that half of the staff was illegal immigrants. it has been too expensive to hire legal workers.

[ohitsmark]

The article doesn't even really say that. Most likely, the dude sells the company to a bigger company, and band shirts are still $19 at HotTopic.

$15 to $20. ;]

[captivewear]

AA isn't going anywhere. Closing down most of the retails stores and sicking to mostly wholesale and keep some of the big stores in LA and NY.

[Klases]

Does anyone else love the size and texture of AA shirts to the point where you can't possibly fathom how they could be going out of business?

[Elbozonic]

not gonna spend 40 bucks on a colored hoodie that every other person owns

[paper halo]

not gonna spend 40 bucks on a colored hoodie that every other person owns

Your avatar = Win.

[salt1384]

or sexual harassment cases.

Huh? When?

[chrislauren]

Does anyone else love the size and texture of AA shirts to the point where you can't possibly fathom how they could be going out of business?

It's not just the tshirts. Everything from that store is just amazing.

[x togepi x]

Huh? When?

there was some article that came out in like '04 where someone interviewed him and he called his female subordinates sluts and cunts and didn't see how that was offensive. there were also some sexual harassment suits that got settled and one that went to court and he won.

[mattplayscheap]

well if their store wasnt so expensive...

[I am Mick]

Bought two super comfortable AA hoodies for 20 bucks each last week. But don't really care...

[re7ard1337]

Huh? When?


"In May, he was sued by three women -- all former American Apparel employees -- who claim they were sexually harassed by him at work. He denies that he has harassed anyone. He attributes the lawsuits to disgruntled former employees. In addition, he denies that he has ever pressured employees into a sexual relationship."

From: http://www.businessweek.com/magazine/content/05_26/b3939108_mz017.htm

[salt1384]

there was some article that came out in like '04 where someone interviewed him and he called his female subordinates sluts and cunts and didn't see how that was offensive. there were also some sexual harassment suits that got settled and one that went to court and he won.

Oh...it happened in 2004, I thought it was recent. All I cared about back then was what I was going to have for breakfast the next day. I didn't care about who went to court or not.
Thanks for filling me in though. ;)

[whatbox!!!]

i got 5 v necks of for the same price as one v neck at AA
same quality too
idk about all you guys but for me thats what i can afford

[maxl92]

Just bought an Anberlin shirt for six bucks printed on AA, I really like the size and feel of it. Saw this thread, checked out their site, liked the hoodies, saw the price, closed the tab. I'll be in Pacsun's clearance rack, somebody call me if a going out of business sale happens.