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.