American Apparel Says It May Go Bankrupt In Next Year

Law360, New York (August 17, 2010, 6:48 PM EDT) -- Business losses and mounting debt could send American Apparel Inc. into bankruptcy, the clothing retailer told securities regulators Tuesday, warning it may not have sufficient cash to sustain operations for the next 12 months.

The Los Angeles-based company's filing with the U.S. Securities and Exchange Commission, combined with a gloomy earnings report, signaled rocky times ahead for the clothing retailer.

Estimated second-quarter net sales of about $132 million marked a decrease from 2009 second-quarter sales of $136.1 million, the company said Tuesday. American Apparel suffered an...
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