American Apparel is apparently in some deep financial trouble. The retailer has suffered substantial operating losses and, according to Gawker, is $91 million in debt! Execs are engaged in a restructuring deal at the moment, but even the company admitted this is really, really bad, explaining in a public statement, “There can be no assurance that if either or both of these events [restructuring deals] were to take place, that the company would be able to obtain the additional sources of liquidity required to continue operations.” What? Potential shutdown?! What happened to you guys? We thought AA was the shopping emporium of the cool kids. Does this mean hipsters are now spending elsewhere? A few ideas as to why American Apparel may be tanking, after the jump.
- Because AA produces clothes that people don’t wear or buy (see: crop tops for men, shiny gold thong leotards, butt-less tights).
- Hipsters have abandoned Dov Charney as their God and now worship Walmart.
- Too much money has been spent on settling Dov Charney’s sexual harassment lawsuits.
So, if American Apparel goes out of business, does that mean the hipster era might come to an end? Uh, you know, not like we care or whatever. [Gawker]