- The Washington Times - Tuesday, August 18, 2015

American Apparel says it has “substantial doubt” it will stay in business after reporting a net loss of $19.4 million last quarter.

“We believe that we may not have sufficient liquidity necessary to sustain operations for the next twelve months,” the company said Monday in a press release.

American Apparel announced plans to reorganize its debt and extend an existing line of credit from $50 million to $90 million, though it expects to post losses for the rest of the year, CNN reported.

The retailer has been struggling for some time, with its stock down more than 86.8 percent over the past year, CNN said.

American Apparel still hopes to turn things around by restructuring its debt and cutting another $30 million in costs over the next 18 months. It also named a new CEO in June and just replaced its global sales manager, CNN reported.

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