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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