Youth fashion retailer American Apparel is reportedly set to close a number of stores globally and lay off staff after it found itself dangerously in the red.
The heat will certainly be on new CEO Paula Schneider who seized the top job in mid-2014, ousting former owner and founder Dov Charney who was sacked for alleged harassment of staff.
American Apparel has stores in Sydney, Melbourne and Adelaide, but typically sells online to a Gen Y audience.
When Schneider was elevated to the top job she vowed to dispense with the brand’s raunchy advertising which some claimed veered close to kiddy porn. Although, it must also be said that much of the debt the brand now faces was accrued, for most parts, under Charney’s stewardship.
The brand famously uses young models in various states of undress often with their legs wide open and crotch exposed.
However, Schneider wanted to veer the brand’s marketing away from raunch and in February said of the new direction: “There’s a way to tell our story where it’s not offensive. It is an edgy brand. And it will continue to be an edgy brand.”
Despite Schneder’s comments, in March the UK division of the company was busted by Britain’s Advertising Standard’s Authority for showing what appeared to be an under-age teen in a thong-bikini.
The brand, under Schneider, has dispensed with the raunch and gone for a more fun look in its advertising, often incorporating gay and lesbian youth into campaigns.
In a sign of how grim things are for the brand, in statement the company said: “Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next 12 months.”
There has been no reports what, if anything, would happen to the Australian outlets if the cost cutting measures were to be introduced.
Another problem for the brand is the ongoing legal stoush with its former owner. Dov Charney apparently has 20 onging lawsuits against the company he founded in 1991 starting as a basic T-shirt manufacturer.
Alongside closing stores and cutting staff, the brand plans to increase its Autumn and Winter ranges – and area it typically hasn’t been strong in.
The sexiest singles in the nation (according to Channel Nine, at least) are back on airwaves with Love Island Australia on Monday, October 4, at 9.00pm after The Block on Channel 9 and 9Now. Aussie sweetheart Sophie Monk will return to host (and play Cupid) alongside new addition, comedian Stephen Mullan a narrator, in the world-renowned reality TV […]
Yotpo is officially expanding into Australia, off the back of significant market growth with massive Aussie names, a landmark investment from Shopify and a plan to help local Aussie e-comm explode. Yotpo’s ANZ userbase includes names like Zoe Foster Blake’s $180M Go-To Skin Care, e-commerce fashion queen Princess Polly, and billion-dollar streetwear brand Culture Kings, […]
Progress has today announced the availability of Progress Sitefinity DX 14.0. This agile, flexible and extensible platform allows organisations to create an ideal digital experience platform (DXP) tailored to their unique needs and objectives with new capabilities for low-code integration and chat-driven engagement, as well as enhanced headless content delivery. The digital world is transforming […]
Tangram has announced that they have signed a partnership with monday.com. the work operating system (Work OS) where organizations of any size can create the tools and processes, they need to manage every aspect of their work. Israeli-based monday.com and Australian-based Tangram form an irresistible team of experts offering unique solutions to agency problems. monday.com […]
Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.
Storytelling agency Enthral has appointed Channel 7 reporter and sports presenter Sean Sowerby as its new senior PR and content manager in Melbourne. Sowerby (pictured) started his award-winning career at 3AW before spending more than 15 years in television. Enthral founder and manager director, Cameron Smith, spoke of the significance of Sowerby joining the agency. […]