Aug 12 Struggling apparel retailer American
Apparel Inc posted a bigger-than-expected quarterly loss
as sales stagnate amid a corporate shakeup that started with the
suspension of founder Dov Charney as chief executive.
The company, which is still looking for a replacement for
Charney, said in a preliminary filing its net loss for the
second quarter ended June 30 was $15 million, or 9 cents per
Sales, which fell in the last two quarters, were flat at
Analysts on average had expected a loss of 6 cents per share
on sales of $162.5 million, according to Thomson Reuters
The company said on Tuesday it was delaying filing its full
financial results as its new board needed additional time to
review them. (1.usa.gov/1rnS33o)
American Apparel, known for its U.S.-made, logo-free and
comfort-oriented clothes, has posted losses in almost every
quarter in the last four years, coming under fire for lax
Charney was ousted from the company in June for alleged
misuse of corporate funds and his role in disseminating nude
photos of an ex-employee.
He is currently under investigation and, as part of the
deal, will not be allowed to serve on the board or be chief
executive until a committee of independent directors clears him.
American Apparel appointed five new board members earlier
this month after five of its seven directors resigned on July 9.
Reuters reported last month citing a source that Charney
should know by mid-August whether he may return as an employee
of the company.
The company's shares, traded on the American Stock Exchange,
lost more than half their value in the past year up to
Tuesday's closing of 90 cents.
(Reporting by Shailaja Sharma in Bangalore; Editing by