American Apparel Bankruptcy Likely


American Apparel, the trendy clothing company, has announced that it may be soon filing for bankruptcy after massive losses amounting to $86 million last year. In addition, its CEO Dov Charney, who has allegedly called women ‘sluts’ and the ‘c’ word, is facing sexual abuse charges by several store employees.

The clothing company has been unpopular of late especially with women’s groups not only because of Charney’s sexual abuse charges but also of using scantily-clad women in their marketing campaigns. Most people believe that American Apparel’s advertisements of practically nude women and Charney’s sexual assault charges have played a major role in the company’s poor business performance and potential bankruptcy. Bad publicity spread by word of mouth and coupled with the reports of Charney’s bad behavior have significantly contributed to the company’s downfall.

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