American Apparel Provides Update on Status of Accounting Evaluation

* Company to restate previously issued consolidated financial statements for the
year ended December 31, 2008 to reclassify revolving credit facility as a
current liability
* Restatement to have no impact on previously reported net cash flows, cash
position, revenues, net income or comparable store sales
* Company preparing amended 10-K for the year ended December 31, 2008, and 10-Q
for the quarter ended March 31, 2009 to file as soon as practicable

LOS ANGELES--(Business Wire)--
American Apparel, Inc. (NYSE Amex:APP) today provided an update on the status of
its accounting evaluation of the classification of its revolving credit facility
as a long-term obligation and certain other balance sheet and cash flow
presentation matters in its previously issued consolidated financial statements.

On July 17, 2009, the Company`s management and the Audit Committee of the Board
of Directors determined that the Company will need to restate its previously
issued consolidated financial statements for the year ended December 31, 2008 in
order to reclassify its revolving credit facility as a current liability. As a
result, the Company determined that because of the pending restatement, the
consolidated financial statements for the year ended December 31, 2008 should no
longer be relied upon. The Company`s management and Audit Committee discussed
these matters with Deloitte & Touche LLP, the Company`s independent registered
public accounting firm, and with Marcum LLP, the Company`s independent
registered public accounting firm through April 3, 2009.

The restatement will result in a $33.4 million decrease in long-term debt and a
corresponding increase in current liabilities. The restatement amount represents
the $49.4 million borrowed under the revolving credit facility at December 31,
2008, net of $16.0 million which was refinanced on a long-term basis in the
first quarter of 2009. This restatement will have no impact on the Company`s
previously reported net cash flows, cash position, revenues, net income or
comparable store sales. The Company reached its conclusion based on its
consideration of EITF 95-22, "Balance Sheet Classification of Borrowings
Outstanding under Revolving Credit Agreements That Include Both a Subjective
Acceleration Clause and a Lock-Box Arrangement," as well as Statement of
Financial Accounting Standards No. 6, "Classification of Short-Term Obligations
Expected to be Refinanced."

The Company is completing its evaluation of certain other balance sheet and cash
flow presentation matters identified since the original filing of the Annual
Report on Form 10-K on March 16, 2009. The Company will complete its evaluation
prior to the filing of the Amended Form 10-K for the year ended December 31,
2008 and will reflect such adjustments to these presentation matters, if
necessary, in the restated financial statements. However, none of these matters
are expected to be material either individually or taken in the aggregate.

The Company currently expects to file its Amended Annual Report on Form 10-K for
the year ended December 31, 2008 to reflect the restatement, along with its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, as soon as
practicable.

The filing of the Company`s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2009, on or before August 19, 2009 will bring the Company into
compliance with Sections 134 and 1101 of the NYSE Amex LLC Company Guide and
satisfy the requirements of the Company`s previously disclosed compliance plan.

About American Apparel

American Apparel is a vertically integrated manufacturer, distributor, and
retailer of branded fashion basic apparel based in downtown Los Angeles,
California. As of June 30, 2009, American Apparel employed approximately 10,000
people and operated over 270 retail stores in 19 countries, including the United
States, Canada, Mexico, Brazil, United Kingdom, Austria, Belgium, France,
Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia,
Japan, South Korea, and China. American Apparel also operates a leading
wholesale business that supplies high quality T-shirts and other casual wear to
distributors and screen printers. In addition to its retail stores and wholesale
operations, American Apparel operates an online retail e-commerce website at
http://www.americanapparel.com.

Safe Harbor Statement

This press release may contain forward-looking statements which are based upon
the current beliefs and expectations of our management, but are subject to risks
and uncertainties, which could cause actual results and/or the timing of events
to differ materially from those set forth in the forward-looking statements,
including, among others: changes in the level of consumer spending or
preferences or demand for our products; increasing competition; our ability to
hire and retain key personnel and our relationship with our employees; suitable
store locations and our ability to attract customers to our stores; effectively
carrying out and managing our growth strategy; failure to maintain the value and
image of our brand and protect our intellectual property rights; declines in
comparable store sales; seasonality; consequences of our significant
indebtedness, including our ability to comply with our debt agreements, generate
cash flow to service our debt; our ability to extend, renew or refinance our
existing debt; costs of materials and labor; location of our facilities in the
same geographic area; manufacturing, supply or distribution difficulties or
disruptions; risks of financial nonperformance by customers; investigations,
enforcement actions and litigation; compliance with or changes in laws and
regulations; costs as a result of operating as a public company; material
weaknesses in internal controls; interest rate and foreign currency risks; loss
of U.S. import protections or changes in duties, tariffs and quotas and other
risks associated with international business; our ability to upgrade our
information technology infrastructure and other risks associated with the
systems that operate our online retail operations; general economic and industry
conditions, including worsening U.S. and foreign economic conditions and turmoil
in the financial markets; and other risks detailed in our filings with the
Securities and Exchange Commission, including our 2008 Annual Report on Form
10-K. Our filings with the SEC are available at www.sec.gov. You are urged to
consider these factors carefully in evaluating the forward-looking statements
herein and are cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by this cautionary statement.
The forward-looking statements speak only as of the date on which they are made
and the company undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.

Contact:

ICR
Joseph Teklits or Jean Fontana, 203-682-8200
or
American Apparel
Adrian Kowalewski, 213-488-0226
Chief Financial Officer

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