August 23, 2010

American Apparel Going Bankrupt?

Even after the recession a lot of designer brands are still suffering. According to Wall Street Journal, American Apparel warned last Tuesday that it may not be in business much longer due to decline in sales and mounting debt.

On the American Stock Exchange, American Apparel fell to an all time low of $1.03. The company has $120.3 million dollars in debt as of June of this year. As Wall Street Journal reported:

In preliminary results for the quarter ended June 30, American Apparel said it expects a loss of $5 million to $7 million, compared with a profit of $7.3 million a year earlier. Sales are expected to total $132 million to $134 million, down slightly from $136.1 million a year earlier.

One can not disagree that American Apparel was a marketing genius as they aimed towards a niche- hipsters with way too much money. American Apparel jack up the price of simple cotton wear for their scandalous ads (with models that look like everyday girls like you!) that look like some amateur porn that was shot in some dude's mother’s basement. Not that I’m at all sexiest. I don’t mind seeing boobs and butt as long as it’s tastefully done... but the majority of their ads just reek homemade porn taken with a point and shoot camera.







American Apparel’s CEO Dov Charney is not exactly a clean guy either. Dov has had his share of sexual harassment lawsuits on hand. A while back, one of Amercan Apparel’s employees sued Dov as he demanded that she pretend to masturbate for him. Dov also once told a reporter that he is more than happy to do an interview but only while he is masturbating. According to MsnBC, Dov has been open about the fact that he had sexual encounters with his employees and according to BusinessWeek, there as been a few claims from internal employees that some seniors in the company received sex from less senior employees in exchange for a promotion. By the way, Dov also posed nakkid for his own racy ad. May I say… How awkward is that to see your CEO’s peen?!


Dov Charney, CEO of American Apparel


I’m not surprised that people are finally losing interest in American Apparel. Their stuff isn’t exactly the best quality and I’m not about to pay $20 for a cotton no logo or design shirt or $40 for a cotton dress when I can buy the same thing at Zellers or Walmart for $10. So the news that they’re going under doesn’t really influence me as I'm not a frequent buyer anyways.


What do you think about American Apparel?

78 comments:

  1. these pictures look like American Apparel is going through a Major Suicidal Business Attempt...get it over with mmmkay!

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  2. to be honest - I don't think I've heard of them til you posted this....(yes i'm sheltered - even after being married for 6 years and having 3 kids). And YUCKO!!!!! who wants to see mr. CEO like THAT?! *BARF* and the ads are definitely poorly done. i think I could've done better!

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  3. That's what I hate about american apparel....their ads are so untastefully done....that makes me don't want to buy any of the products...

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  4. i have never really thought them tasteful. the only thing that hasn't been pornified is their nail polish but even those bottles had recall. ugh so embarrassing trying to surf their site in a public place! :/ i thought they were selling clothes rather than the lack thereof.

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  5. The ads are just bleh. I wouldn't buy anything if I saw these ads...

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  6. Their main factory is located here in downtown L.A. They have tons on stores around and i like going there asking why their plain crap is so expensive lol. They always say, its good quality lol but like ummm sure!

    I see those pornish ads in big billboards around the city and its pretty scary to look at. I heard those girls are not models but rather customers that sends their pictures in.

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  7. God, those ads are not great! Good point!! SarahD:)

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  8. Eww how distasteful. I've never bought anything from AA so I don't care!

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  9. that's a big turn off for me. Do they actually expect people to buy stuff from them after looking at these ads. :/

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  10. Ah I dont really like them.

    Check out my giveaway in my blog :D

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  11. Pffff. I didn't know it about AA's CEO! Uhhh... I'm not a huge fan of AA... Not a cool, not a cheap... only a shit. :)

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  12. haha! i heard all about sexual harassment stuff, but i've actually never seen this ads. it really is just porn...not much clothes advertising at all.

    if AA does go under then i guess i can see why. but maybe we can get some free stuff from all of this. sorry, i just love free stuff. :)

    http://ohtobeamuse.com

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  13. Oh, I am so so glad somebody else shares my disgust over these racy and disgustingly distasteful ads! What irks me more is when they feature really younger looking girls (13-16) in skimpy undies!

    Though I've been tempted to buy some items there once or twice, I'm glad I don't own ANY American Apparel!

    ML

    p.s. Yes, proudly from Ottawa! =)

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  15. did u catch the Jane article a couple years back? He jacked off while she interviewed him...

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  16. wow they do suck! hhaha..i never looked at their ads really. i probably glanced at their site a few times but that's the most of it.

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  17. haha omg i hate their ads! my bf was telling me about the nasty shit the owner does and i didn't believe him...haha! well i believe it now.

    im surprised they are going out of business because they charge so much for a freakin tshirt....i recently bought a pair of denim shorts for like $50!! haha i know...stupid me.

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  18. I think i should be ashamed that I got excited by this post.... bc, if they go out of business, doesn't that mean their ridiculously priced clothing will go on sale? :T Just saying...

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  19. oh man, not surprised. the whole thing is so terry richardson. AA stuff is so overpriced, and always super basic. and usually too short to actually wear! like your take on it x

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  20. i like these pics looks awesome lol
    awesome ass pics


    http://smsjar.blogspot.com/

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  21. I do understand that sex sells but gawd damn that is too nasty, nasty in a way that it doesn't really advertise the products, WHY WONDER their sales drop! their ads show nasty trashy people, and of course who would'nt like to look like that!

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  22. Oh I also forgot to say, SUCH A SHAME to have the company called "AMERICAN APPAREL" they make us USA look bad

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  23. Honestly, it's about time.

    I think there are certainly some nice things to say about American Apparel but I think their poor press and even worse management outweigh any positive aspect of AA.

    I have had to seriously resist buying cute things from AA because I didn't want to support Dov's empire...and I am not even a very radical person. Enough is enough.

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  24. i personally like several of AA's ads (like the ones shot my taghrid or denni chicmuse) but i have the but crack and boobies one.. i agree that they should be shot in a tasteful way !

    and i think AA IS overpriced ! i mean F21 has similar basics for like a quarter of the price !

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  25. the ads are too much, thats true, the clothes are good but too pricey for just something very basic.
    as far as the him, he needs to stop doing this kind of ads!

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  26. oh we dont have a lot of american apparel here, but sheesh thats a ceo?! o.o

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  27. Sad to hear this. I have not purchased AA products before but the ad is overboard.

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  28. It's pretty bad to have sales go down $4mil and your bottom line decrease by $14mil. They must have ramped up for expansion and got holding the bag...or maybe homemade porn got more expensive.

    At times I enjoyed being the annoying little brother--I had a picture of one sister taken the day after she tried to give herself a home perm. I usually shared that with a guy just before their 3rd date. To pay me back, she snapped a picture of me @ 16 with long hair. Hahaha!

    I never came close to getting even with the elder sibs.

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  29. Uhm, how can they be going bankrupt when like you said, they charge quadruple the $$$ for a simple cotton shirt... and may i add that i have contributed thousands to their brand for my business!!! HMPH! Well, at the same time, i'm kinda glad... there are tons of other t-shirt suppliers out there who provide the same quality for a more reasonable price. I'm exploring my options anyway and looking at other suppliers so the news of this is just speeding up that decision. haha!

    P.S - not a fan of their home made ads.

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  30. I never shopped there. Didn't like the prices on such simple clothings and their ads..

    http://xmaterialgirlsx.blogspot.com/

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  31. This is a big reason why I don't buy from them anymore. I still own some of things from AA and I still wear them all the time but these lawsuits and the sexual harrassment cases really stop me from even stepping in the store/visiting the website!

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  32. ive never really been an american apparel fan. i remember trying i dress on once and i took the same size in multiple colours into the change room and every single one was a different size and fit. totally inconsistent even tho the labels all said they were Medium. why pay for crap?

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  33. My view? Dov Charney is either extremely misunderstood or he really is a misogynistic dickwad with no business head.

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  34. wow, that's crazy news! but i get what you mean, it doesn't seem like they have anything really unique and they're quite expensive! their ads are kinda pornish huh? dude that's gross about the ceo, what kind of company allows that ? :(

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  35. I can't help but be a little pleased that they're going under *evil laugh*

    I do not like AA...

    Yeah VS opened up last week I think! I went to the mall today--it's a Monday around noon and I had to wait for 20 mins to get into a fitting room. I was going to buy something but then I saw the lineup to pay and it was ridiculous O_o You'd think people never saw bras before in their life!

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  36. wow that is crazy. i never have been a fan of aa though.

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  37. I think it is highly over rated and the advertising is trashy and as you put it 'pornographic', not my cup of tea at all.

    *following your blog flower*

    Eda x

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  38. ohh wow on that post and thanks for posting it. Not tasteful i know

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  39. american apparel never appealed me in the first place. it took me 2 seconds to get in their door and step out. it was a mess and the clothes was not in high quality.

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  40. I wish Forever 21 come here instead of American Apparel, they've recently renovated a 3 storey building just for their goods but it isn't that appealing to the people here since their design are too loud for an Irish taste... and damn expensive I agree!

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  41. Weird ads and pervy CEO aside, I'm kind of sad to see AA posting such heavy losses as the company does have its positive side. AA is an outspoken advocate of immigration reform and I do admire them for how they keep manufacturing in the US. For those who question why they'd pay $40 for a pair of leggings from AA when they could get a pair for $10, the price difference is probably explained by the cost of labour.

    AA has had its share of outspoken opponents and boycotters though. I wonder how much their recent losses are related to consumer boycotts...?

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  42. Perhaps now they've learned that rude images don't always mean sales

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  43. Great post Hun! I've been in American Apparel once (maybe twice) and I agree with you - I wasn't into the concept of no logo at the price they were selling it. I mean, I love basic cotton, but their clothes seemed so thin like I would have to layer it for sure or deal with a see through cotton top and offend the public LOL
    American Apparel (the one on Yonge Street downtown) has a huge billboard picture ad out front and I have to say, quite a few times I have stopped and stared at their ads. They are a bit racy but I do like some of them! Sort of like Guess ads...I think the Guess models are super hot and dripping sex appeal. I love it. But the girl on girl theme is really obvious for their ads- I don't recall any Guess ad campaign picture with only two hot guys (and no girl in the same picture)

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  44. i've never really been a fan of american apparel. i think their stuff are wayyy too expensive for what they are. i actually don't own anything american apparel.

    <3, Mimi
    http://whatmimiwrites.blogspot.com/

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  45. Buuurgghhh
    That guy is such a mong.
    And yes, all American Apparel's stuff costs WAY more than it should, but I can't say I haven't been suckered in in the past... :D
    xxx

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  46. THANK YOU FOR POSTING THIS! I totally agree that their ads are semi-pornographic and tacky! And Dov seems like such a skeeze. I also hate that Chictopia uses them as a sponsor. They shove their ads down our throats.

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  47. AA is way too overpriced and the ceo is a CREEP!

    ann

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  48. their ads are not very tasteful, they definitely look like cheap porn!

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  49. Oh my goodness, look at those ads!!! Trying to shock the consumer, huh? Great post!!

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  50. Hello from your new follower,

    ok their market strategy isn't all to clear with those pics... eeekk is all i can say!

    Taylor
    Have a good night!

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  51. i was surprised! and gee the ads looked like something from a playboy magz.. who would want to buy anything from them if this is the case esp kids seeing in a catalogue? now i understand why all of a sudden the business is falling apart..

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  52. Disgusting. disgusting. disgusting. Can't believe I wasted my money there.

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  53. I've always been turned off by their stupid softcore porn ads, fueled with the fact that AA is super popular (or rather was) with hipsters, made me hate it.

    Sadly, I caved in last week, and finally ordered something from AA. (Yeah, I know. Stupid me.) I was so disappointed in how ugly the oxford dresses I ordered turn out to be. They were like giant pillow cases on me! I contacted them for a refund, and hopefully, those dirty perverts will give me back my money, especially with this looming bankruptcy.

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  54. Were the last pictures actually in ads?? I didn't know it was allowed to HAVE ads like that?! And you're right -the ads do look like amateur porn..

    I admit that I have a few of their t-shirts though. I like how they're loose with longer sleeves and low v-necks.. but they're WAY too expensive for what they are.

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  55. I remember there was once a time when I thought American Apparel was cool. But after buying a few of their products, I realized the quality was poor in comparison to how much I was willing to pay. I believe that part of the reason as to why they are going so bankrupt is because a lot more brands and retailers are beginning to sell clothing of that same genre for a cheaper price. Why buy an expensive plain v-neck tee when you can buy something so similar at locations like Walmart? Liquid leggings, basic pullovers, sheer blouses, lace dresses. They`re all pieces that can be bought at common retailers at friendlier prices and at better quality.

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  56. I really like American Apparel, but these ads are horrible. I don't like them at all.

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  57. I find their ads very distasteful... you said it perfectly... looks like amateur porn!! Can't say I'm a fan of their clothing either, but I'm not exactly their target market.

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  58. i agree... i think the ads are horrible but i find some of their products appealing such as the mesh bodysuits or the backless dresses. however, i've never purchased anything from them so i can't really give you my opinion.

    hope you're having a good week!
    <3 cins

    --
    http://design3rd.blogspot.com

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  59. Great article! I'm not a frequent buyer either, but I do own and like some of their pieces. But their ad campaigns and other scandals have definitely left a bad taste in my mouth!

    Leia

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  60. Their ads do look like home made porn - gross to the max!!! Although I did have some lemmings over AA stuff but its way too costly to buy from the ONLY ONE AA store in Sydney and I refuse to pay for shipping Lol

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  61. Last year I made my first and only purchase from American Apparel. I saw many bloggers with AA skirts so I decided to do it as a one off. I was disapointed in the end. The skirts were far too overpriced. I also hate how the adds have become porn. I was so incredibly shocked the last few times I went on their website because I think its completely inappropriate.

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  62. Ugh!! I say good riddance! I hate how disgusting Dov was running his company! And I'm no prude, but I hate how "cheap and skanky" their ads were too. Not a fan at all. BTW – sorry I’ve been MIA! I don’t know when I’ll be back with a post, but I just wanted to swing by and visit my “girls” :) Hope you're enjoying the rest of your summer!

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  63. At first I thought AA was pretty cool because they were an american company, so yeah the prices were high, but there were people in California or wherever the warehouse is making the clothing, and with the economy being so bad, I fully supported a company that brought on more jobs. And Tori Amos prints all her tour shirts on AA T-Shirts!

    Then...all the ads...looked more and more like you said, porn. Then I went into a AA store and I felt I could splurge on a Tshirt because they were paying someone $7 an hour to make it in the US and not $1 per hour, if that, in China. But everyone that worked there was so damn rude! Then all of the info on the CEO leaked out and I lost more and more respect for them.

    I still support American jobs, but hey I still shop at Target and Kmart. I think I would only shop there for that reason though, for supporting the blue collar workers there. But not the rude employees at the one near my house. They need to get a whiff of their own poo first.

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  64. I can't stand American Apparel. It's low quality, ill fitting junk and the CEO is seriously is the biggest perv this side of child molesters.

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  65. That's actually really sad...Almost my entire wardrobe is from American Apparel. I do ballet, modern, jazz, pointe, etc...and their clothes fit perfectly on a dancers body. I detest the happening of sexual harassment within the company; however, i wish they would just get a new CEO so that the company could rise above...:(

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  66. yeah not a fan of their ads either...no offence...all of their models look like drug addicts >_< but i've always though AA is overpriced anyway...and their online site never has stock (in terms of colours...) boo....forever21 is a much better budget frdly alternative...

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  67. Aw that's too bad - where will the hipster SA's work now? Eww I'd heard about their racy ads and pervy CEO but now I feel even more turned off after seeing the pics you posted here!

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  68. American Apparel is overpriced crap run by a creepy CEO who lacks all traces of professionalism.
    Plus the ads are gross and sexist. A bit of sexiness fine, but they crossed the line!

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  69. how are they going bankrupt!?! they have such a high profit margin (because their clothes are overpriced)

    umm...im not a huge aa fan but some of their items are really practical, so i guess i'll go stalk up some more low back dresses

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  70. ok so i can find some good things there, like i like their socks. but...i won't be sad to see it go! did you see their 'best butt' contest? that was awesome :)

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  71. ive always thought AA ads were a little over the top, its kinda disturbing as a normal fashion store haha ahwel x

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  72. I have a love/hate relationship with AA. I do agree about their ads being rather awkward. I simply cannot browse their site in the company of others. I love their idea of being a basics store (which is all I wear) but they are sooo expensive. Their stuff is much cheaper on amazon so I if I can buy it from there I do so. I've bought a handful of things from them in the store over the course of several years, but mostly because i wanted to be a cool hipster kid hahaha how sad.

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