American Apparel announced a $17.6 million loss for the first quarter of 2010, a figure that puts the company in danger of defaulting on one of its loans. If it can't refinance, you'll have nowhere to get striped tube socks!
While revenues were up almost 7 percent during the first quarter compared to the same period last year, AA's operating loss was a lot bigger than the $3.9 million the retailer lost during the first quarter of 2009. The company is now more than $91 million in debt, and the most recent losing quarter could put the company in default of one of its loans.
American Apparel is now trying to restructure the deal, but it's not sure it will be able to do it. Which means the company could be in trouble: "There can be no assurance that if either or both of these events were to take place, that the company would be able to obtain the additional sources of liquidity required to continue operations," the retailer said in a statement.
Wait, that can't happen! Where would we get our V-neck T-shirts and colorful briefs? Who's going to make our sexy, provocative advertisements? Who's going to employ all the over-educated kids who want start bands and fashion labels and performance art galleries? Who will we make fun of? Dov, you must save yourself. We beg you!