Beleaguered American attire may just finally must Shut Down

American attire appears to be getting ready to chapter, in keeping with a regulatory filing from the company.

The L.A.-primarily based clothing model has been embroiled in a criminal fight with its now-notorious founder and former CEO Dov Charney, whom the firm fired ultimate December.

within the submitting, American attire important points its current financial woes—sales for the 2d quarter tallied $134.four million, which is a 17.2% drop yr over yr. the corporate’s shares are at the moment trading at $0.15, and in line with the filing, the loss per share within the 2nd quarter of this yr used to be $0.11.

American apparel CFO Hassan Natha wrote:

We incurred losses from operations and poor money flows from running actions for the six months ended June 30, 2015 and such losses would possibly proceed for the remainder of 2015. based totally upon the tendencies taking place in our operations because June 30, 2015 and in the course of the date of this free up, along side our current expectations and projections for the following 4 fiscal quarters, we consider that we may not have adequate liquidity necessary to maintain operations for the following twelve months. These elements, among others, elevate vast doubt that we could possibly continue as a going situation.

in an effort to stanch the glide of its money losses, the corporate also has a “strategic turnaround plan” with a purpose to attempt to minimize $30 million in costs over the subsequent 18 months—a transfer in an effort to seemingly be futile, if American attire cannot dig itself out of its debt gap within the quick term.

the corporate says it is exploring its choices with lenders, trying to find a approach to meet its debt funds. American attire’s next scheduled interest payment for $13.9 million on debt owed will be due Oct. 15, and it at the moment doesn’t have the cash to pay it.