American Apparel Set To File for Bankruptcy?

This seems like the classic case of a company expanding too quick too fast. Plus having to give Woody Allen 5 million dollars did not help the situation either.
via Huff Post

NEW YORK — Troubled clothing chain American Apparel Inc. said Tuesday it might not have enough liquidity to sustain itself over the next year.

The news sent shares down 21 percent to a 52-week low.

The company also reported Tuesday a preliminary second-quarter loss. It expressed doubt about its ability to continue as a “going concern,” standard language foreshadowing a possible bankruptcy.

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American Apparel Launches ‘Best Butt in the World’ Contest

I have died and gone to heaven. American Apparel has launched a contest looking for the best ‘Bottom in the world’. Full contest review below:

We’re looking for a brand new bum (the best in the world!) to be the new “face” for our always expanding intimates and briefs lines. The winners will be flown to LA, photographed and featured online. Send in a close-up photo of your backside wearing American Apparel panties, bodysuits or briefs for consideration and vote for your personal favorites.

Calvin Klein drops ‘threesome ad’ in NYC

Desperate attempt at publicity for a dying brand? Old head designer Calvin Klein goes the way of American Apparel and Abercrombie & Fitch with their new ‘threesome’ billboard campaign.

It seems billboards like this are now commonplace in NYC and have even caused multi-million dollar lawsuits in its wake.

More below:

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via CBS 2 NY

It’s hard to offend a New Yorker with an advertisement, but that’s not to say that people won’t keep trying.

The latest racy billboard hoping to shock people is in SoHo, and it features three partially clothed models in a sexually suggestive situation.

A billboard is supposed to catch your eye, and in this instance, consider that mission accomplished.

“It’s just completely out there,” one mother said. “I don’t want the kids to see it.”

“I think it’s telling people it’s okay to do that, and it’s kind of gross,” Aleasha Stephens, a tourist from Houston, says.

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Whoa!!!: Woody Banks $5 Million from American Apparel Rabbi Billboard

I did not think these guys would buckle and give up such a huge payday to Woody(pause). They were wrong for using his image but was that campaign that successful that his lawyers could command that type of money? Read the story below:

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NEW YORK — Woody Allen agreed Monday to a $5 million settlement in his lawsuit accusing American Apparel of using an image parodying him as a rabbi without his permission.

Both sides announced the settlement _ to be paid by American Apparel Inc.’s insurance company _ on the morning a trial was to start in federal court in Manhattan.

Reading from a statement outside court, Allen said he hoped the outcome “would discourage American Apparel or anyone else from ever trying such a thing again.” His lawyers said the $5 million appeared to be the largest amount ever paid to settle a lawsuit brought under state privacy statutes.

American Apparel president Dov Charney told reporters it wasn’t his decision to settle. The Los Angeles-based company’s insurance company “controlled the defense” in the case, he said.

“I’m not sorry for expressing myself,” he said.

Full Story Here..