From bad to worse for American Apparel

From bad to worse for American Apparel

American Apparel's second quarter results show that it is still in a downward spiral: the American fashion company's turnover are plummeting, its losses are growing and it is running out of money.

Losses are growing

In the second quarter, American Apparel's turnover reached 134.4 million dollars (120 million euro), down another 17 % over last year's second quarter results. The company's losses are also growing, from 16.2 to 19.4 million dollars (17.5 million euro).

 

The weak results mean that American Apparel is still in deep trouble: only last week, the company announced that it would not survive the next twelve months if it did not get additional resources, having just enough left to pay a interest payment prior to 15 October.

 

To avoid bankruptcy, American Apparel has now been given an 80 million euro line of credit, thanks to its investors. This is merely a short-term solution, as the company warns it is not out of trouble yet. The forecast for its upcoming 4 quarters remains a dreary one. The company had already received a 50 million dollar line of credit (45 million euro) from Capital One in March 2015, which apparently did not last long.

Questions or comments? Please feel free to contact the editors


Lucas Bols drunk in love with Passoã

16/11/2017

Liquor manufacturer Lucas Bols’ turnover has grown 23.8 % in the first six months of its broken fiscal year, to 48.8 million euro. Aside from 0.5 %, the entire growth is thanks to liquor brand Passoã’s integration.

"Hunkemöller prepares IPO"

16/11/2017

According to financial press agency Bloomberg, investment company Carlyle Group ordered Rothschild bankers to prepare an IPO for Hunkemöller.

Italian Food-focused theme park opens in Bologna

16/11/2017

Fans of Italian cuisine have to head to Italian Bologna, where Eataly World opened, a theme park focused on Italian pasta, wine, pizza and more.

CEO Bernard Deryckere will leave Alpro

16/11/2017

Bernard Deryckere, who was the man behind Belgian dairy company Alpro’s international success, will leave the company after sixteen years. Apparently, he will leave because of differences of opinion with its new owner, Danone.

Ahold USA trials robot in Giant Food Store

15/11/2017

Ahold USA is currently trialing a robot in a Giant Food Store. Its job is to detect dangers and then ask for assistance. He can also point out empty shelves and check prices.

India is promised land for Belgian apples and pears

14/11/2017

India is turning into the promised land for Belgian fruit farmers. It is already Belgian apples’ most important non-European market and Belgian pears are also promoted throughout the country.

Back to top