What About American Apparel Suffering From Scandal?

American Apparel, a young apparel brand in the United States, is known by many people for its short skirts and tights. However, in recent 5 years, brand disputes and scandals have continued.

Recently, American ApparelInc. said brand funds were not enough to support the next year, and plans to save $3 million by closing down poor stores, reducing store size and layoffs.

At the same time, a new autumn series will be released for revenue.

Markets hate uncertainty, and investors are less willing to get involved in legal issues.

At present, Dov Charney, the founder of the brand, is carrying out complicated litigation with its former owner, the related organization and personnel of its own brand American Apparel.

The brand also claims that the company is working to raise additional capital.

But Lloyd Greif from Greif&Co, a Losangeles financial investment company, said that September was the school season.

Who else will buy the new autumn series?

What American Apparel needs most is external investment. However, with such a clear and uncertain leadership, there are too many risks in the brand, and no one is willing to invest.

In 2011, Charney was accused of sexual assault by former company employee Irene Morales, demanding damages of $250 million.

Later Charney was repeatedly accused of various reasons.

So last June, the board of directors of American Apparel decided to recall the position of Dov Charney.

The board said, "we are worried that a leader who does not play the game by reason will hinder the success of the business."

In the letter of dismissal, besides the scandal of Dov Charney sexual harassment, the board of directors of the company also mentioned

。

However, Dov Charney did not give up the desire to win the company.

Facing the merciless company that kicked him out, in June of this year, Dov Charney went to court on the basis of the board's libel and violation of unfair competition law, including AmericanApparel and American Apparel's major shareholders and current board members.

At present,

The results have not yet been published.

However, American Apparel has undoubtedly been hit hard.

After the news of the recent layoffs, the reform has led to a fall in share prices and no improvement has been seen.

American Apparel board's Hollywood public relations Allan Mayer once said, "the reputation of American Apparel in the past stems from the contradiction between the part of the brand's deviant and the idealist part, so that it has gained a unique position in culture."

Today, too many scandals and disputes have made the American Apparel deviant part too heavy, even the brand itself can not be absorbed, consumers are even more unsatisfied.