The future of American Apparel seems in question now, according to numerous reports. The company, known for its racy ads, filed a recent report saying there are factors that "raise substantial doubt" that it will "continue to operate as a going concern."
American Apparel faces all kinds of issues: quarterly losses, lagging sales, high debt, lawsuits and an investigation by the US attorney's office after it switched accounting firms. The attorney for founder Dov Charney, who always seems to attract his share of controversy, even admitted to the Los Angeles Times that the chain might need to close some stores.
On the subject of store closings, American Apparel did grow awfully fast. It now operates 280 stores, nearly double its store count in 2007.
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