American Apparel on verge of bankruptcy

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In less than ten years, American Apparel has risen from that store where you can buy your fair-labor solids to a hipster retail behemoth. Considering sales and brand awareness has spiked in the last few years, it's surprising that their earnings have been so low.

Their last quarter's earnings – which were reported late, never a good sign – were the lowest in the company's history. They're now shouldering a debt of over $121 million in addition to its twenty-one percent stock plunge.

How exactly did this happen? Maybe it's bad hiring practices, poor management, the fact that everyone in corporate is expected to look like a floor employee, or because no one told them that The Elaine Benes is the new thing, but they're almost certainly on their way out.