American Apparel Performance Loss Has Not Improved.

In the past few months, Dov Charney, the founder of American Apparel, has been trying to find a way to return to the company, not only to meet with relevant personnel and bankers, but also to court.

Last week, Charney sued American Apparel investor and bondholder Standard General to pay the $30 million claim for external law firm Jones Day making him no longer suitable for American Apparel chief executive's opinion.

Standard General calls it unreasonable.

In the face of various unfavorable factors, American Apparel shares fell slightly to 1% dollars to 0.64 dollars as of Monday, and this year's total decline is more than 37%.

Struggling America

Last week, American Apparel Inc. was badly battered by the prosecution of former chief executive Dov Charney. The first quarter earnings report has been disappointing.

As of the first quarter of March 31st, the net loss of American Apparel Inc. expanded significantly, from $5 million 500 thousand a year earlier to $26 million 400 thousand, about $0.15 per share.

Sales fell from $137 million 100 thousand to $124 million 300 thousand, or 9.4%.

The company said it would plan to sell $10 million worth of shares to raise funds, and the proceeds would be used for working capital and general business purposes.

Although CEO Paula Schneider is committed to reversing the company's

This quarter's performance is mainly affected by the improvement of inventory items for reducing slow-moving goods, which is expected to have a negative impact on sales and profits, but at the same time boost liquidity.

Inc. has long been heavily indebted. In March of this year, it borrowed $15 million from the private equity fund Standard General, and net cash increased from $8 million 300 thousand at the end of 2014 to $20 million 900 thousand. In the future, a 14 million dollar bond interest will have to be repaid.

Paula Schneider, chief executive, believes that the company has shown signs of improvement, and that commodities are better this year than in the same period last year.

She believes that the current direction is "correct". Such strategic change is a very important process and a turning point, not a brand problem, but a "implementation problem", and emphasizes that the brand is "extremely strong".

American Apparel Inc. does have a lot of money to invest. It has to develop many capabilities to create strategic plans, such as demand planning.

In the list of regional revitalization plans, the company is expected to touch on infrastructure, operation and financial planning, cost control, design / product development, retail store productivity, e-commerce and wholesale optimization, e-commerce analysis and brand building.

Schneider believes that the quarterly change may be more prudent than the year. "We are not talking about a change in three years."