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American Apparel closes a challenging year

Stan Alcorn Dec 31, 2014
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American Apparel once stood for some combination of sexy, creepy, and made-in-the-USA. But after a year of flat sales, the company is making some changes, at least at the top. As of Jan. 5, the company will have a new CEO, since its infamous self-proclaimed “dirty guy” was fired after a long string of harassment allegations (and flat sales). And now hedge fund Lion Capital is reportedly pushing the company to find a new owner. But can a change at the top alter the brand’s bottom line? 

Marshal Cohen, chief retail analyst at the NPD Group, says American Apparel faces new competition in the “fashionable basics” category. And Jennifer Black, CEO of Jennifer Black & Associates, says to succeed in this new environment will take both low prices and the ability to nail the next fashion trend.

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