American Apparel Canada to Close Stores and Lay Off Workers

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American Apparel Canada announced on July 6 that they will be closing an undetermined amount of stores and laying off workers in an attempt to turn around its fortunes.

The cuts will save a total of $30 million US, the company said, though it did not say how many shops or jobs will be affected by these closures. American Apparel has 239 retail locations and a total workforce of around 10,000.

Paula Schneider, chief executive of American Apparel, said the focus now is to remedy problems that caused “steep losses” over the past five years. Over the past few years, American Apparel suffered more than $300 million US in losses, largely under its founder and former CEO Dov Charney, who was forced out by the board of directors last year.

Since taking the reins in January, Schneider has made numerous changes to the brand, including revamping American Apparel’s marketing strategy, remaking the organization’s management structure, and bringing in more stringent forecasting and budgeting processes. So far there’s no word about how many of the store closures and lay offs will affect the Canadian market and it will take some time to see if this new plan is able to save the struggling brand.


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