American apparel might come to a close if they don’t resolve their finances after filing for chapter 11 bankruptcy. It is said that there is no guarantee if the company will have any operational finances to secure any expenses however the stock is still trading at an all time low of 0.11 cents per share.

 

There is rumor going around that founder and ex CEO Dov Charney is suing one of the largest shareholders of the company for Defamation and not only that but it was told Dov Charney was sued in numerous occasions for sexual harassment and getting oral sex from employees in the company. All cases were dropped as Dov Charney was proven his innocence. The company’s market capital now stands at $20,000,000.00 what will you do as an investor ? Since the stock is super low would you increase your shareholding ? or would you sell your shares and cut your losses ? The question is both really risky since financial capital has vanished, and investors are probably crying now having lost millions of dollars on the company’s stock price plummeting.

 

 

Dov Charney’s net worth at one point was $500 million or more and in the past six years lost all of that money having been worth only $100,000 according to celebrity net worth. It’s ashamed to see a company on a rise and then a sudden fall within a decade. Can American Apparel be saved by its finances and structure in its company or will it’s corporate entity fall and collapse to pieces. As much as the brand is highly popular and sold to millions all around the world perhaps they should start thinking about cutting down on costs and reducing employee turnover just like the legendary Henry Ford would plan on doing to keep operations afloat.