In an on going battle with former founder and CEO, Dov Charney, the Los Angeles based fashion giant American Apparel said it plans to cut spending by $US30 million over the next 18 months.
To implement the cuts, officials announced they would close an undefined number of under preforming retail locations.
The company, which makes its own clothing in downtown LA had 239 stores in 20 countries, including 135 in the United States at the end of March but has suffered devastating losses in a sales decline that began in 2010. Despite the announcement, plans to resign an autumn line for both women and men are still underway.
“The cuts are a necessary step to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long term profitability,” said recently appointed CEO, Paula Schneider.
