With No CEO in Line, American Apparel Sales Drop the Most in Four Years

Without a permanent CEO in line to replace Dov Charney after he stepped down in June, American Apparel sales have been suffering.
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Without a permanent CEO in line to replace Dov Charney after he stepped down in June, American Apparel sales have been suffering. It posted the biggest quarterly sales drop in four years, leaving the retail chain with large losses. Compared to third quarter last year, American Apparel's sales were down over 5% to $156 million. Net loss for the quarter came in at $19.2 million, more than 10 times worse than a year ago. It only has $9.4 million in cash left. It's negotiating an unsecured credit agreement with a hedge fund, hoping to give itself more borrowing power. American Apparel's founder and former CEO Dov Charney was suspended due to alleged harassment charges. Legal fees related to his departure topped $5 million, which had to be written off last quarter.