Thursday 29 December 2016

American Apparel To Reduce Its 147 Workers And Closing Some Stores

American Apparel

The US clothing giant has closed 12 stores nationally including those in Oxford Street, Covent Garden and Carnaby Street.

A total of 147 employees have been made redundant, with only the Camden High Street store remaining open.

The firm fell into administration in November after falling foul of tough trading conditions in Britain and America.

Jim Tucker, joint administrator and restructuring partner at KPMG, said: "Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realise value for the creditors.

"The Camden store will remain open into January."

The remaining 31 members of staff based in Camden and at the firm's head office will be retained in the short term, KPMG said.

Its announcement comes after American Apparel filed for US bankruptcy protection for the second time in a year in November.

The company flagged up problems with its finances as long ago as August 2015, saying it might not have enough cash to keep the firm going as losses widened.



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