Doom scenario continues for American Apparel
11 Nov 2015
American Apparel saw estimated net sales for the third quarter drop 19 percent to 126.1 million dollars (83.4 million pounds), as the company filed a report with the SEC stating that the company’s bankruptcy resulted in missing its reporting deadline for the quarter.
With only preliminary results to go on, the company revealed few surprises. It said like-for-like sales dropped as stores were closed and exchange rates proved a challenge.
The company share price has dropped so low since the bankruptcy filing, that investors were able to buy back stock, resulting in reduced net losses from 19.2 million dollars in the third quarter of 2014 to18.8 million dollars this year.
Sales for the first nine months of 2015 plunged 16 percent, while net losses dropped further from 40.9 million dollars last year to 64.5 million dollars this year.
CEO Paula Schneider, who replaced reviled founder and former CEO Dov Charney when he was fired last year, is putting up a fight, but it is not a fair one. Last month, the company revealed optimistic plans for a turnaround, going so far as to say it would once again be profitable in 2018. But with public confidence low and Charney still hovering and potentially causing problems, the embattled company has far to go.