American Apparel Essay

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Business & Management (SL) IA:

“Would lowering the prices of merchandise at American Apparel bring more customers in to help profits rise?”

Introduction

American Apparel is a popular clothing company. Dov Charney, is the founder of this company. He was a Canadian businessman and was the CEO from 1989-2014.It's sewing factory is the largest sewing facility in North America. In the early 1990s american apparel was just a small start-up that was established by the canadian Charney. After realizing that the store was becoming a success, Charney then decided that he wanted to expand into direct consumer retail. A little after that the company went into aggressive expansion mode.

After years of disgusting that american apparel is going to close, this move is finally happening. January 12th a delaware …show more content…

In 2015 they filed for bankruptcy, but apparently recovered by february 2016 after losing $200 million in debt and touting a recovery plan. The company was not able to raise enough money to implement the plan, so they filed for another bankruptcy in November of 2016. The sales of the company were unavoidable, and it's only by liquidating its remaining assets and selling off the valuable parts of the company that what was once American Apparel can walk away from this. Will lowering the prices help this company?

Commentary

American Apparel has filed for bankruptcy several of times. This problem has a lot to do with their prices. So how can we prevent this from happening? The pricing of their clothes are overpriced, shirts range from $20-30 each. Pants range from $40-60 per pant. Prices like these would not really draw customers into the store, unless we are talking wealthy customer. This is what causing the bankruptcy, as well as the closing that is happening by the end of april. A way to keep this business up and running is if they

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