American Apparel sees a bright future | RetailDetail

American Apparel sees a bright future

American Apparel sees a bright future

American fashion company American Apparel hopes its bankruptcy can be the start of a bright future: the company hopes to be profitable by 2018, which would be the first time since 2009.

Keep contracts

The chain is even looking for a 23.7 million dollar (20 million euro) net profit in 2020, which would even trump its record year, 2007. It is looking at the future with the continuous problems with its founder and former CEO Dov Charney in mind. He still wants a sizeable compensation, which could negatively effect American Apparel's results.

 

The company also wants to continue the relations with its current suppliers and rental partners. The reason to file for bankruptcy is not to cancel the current deals with those parties, but to alleviate the pressure of its high interest rates.

 

Prior to the bankruptcy, American Apparel had a 145 million dollar (130 million euro) debt, while the debtors will now only get 1 million dollars (900,000 euro) in total, to divide among them all.

Questions or comments? Please feel free to contact the editors


Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is still strongest global brands, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

HelloFresh increases turnover forecast

14/05/2018

Mealbox delivery service HelloFresh has increased its 2018 forecast: the German company now expects a 35 % growth, up from its previous 30 % increase forecast. Positive results in the United States, which has become the company’s main market, were the main reason for its adjustment.

Brussels bio chain Färm keeps expanding

14/05/2018

Färm, a bio store chain from Brussels, is supporting a planned expansion with a crowd funding campaign. The chain aims to open its biggest store so far in the North of the European capital, extending its services with a bakery in the store. 

More profit from smaller volumes for AB InBev

09/05/2018

Despite AB InBev’s beer sales dropping 0.2 % in the first quarter, the Belgian-Brazilian beer giant did generate a turnover increase and a gross profit above expectations.

Ahold Delhaize mainly grows online

09/05/2018

Belgian-Dutch merger group Ahold Delhaize has had a decent first quarter, thanks to a Belgian turnaround, a good performance in the United States and strong online growth. Unfavourable exchange rates did spoil the party somewhat.