March 25 (Reuters) - Clothing retailer American Apparel Inc , struggling with weak sales and heavy debt, said it plans to sell $30.5 million shares to raise working capital and to pay interest on its senior notes due next month.
The company’s shares fell as much as 20 percent to 60 cents on the NYSE MKT on Tuesday. The stock is in danger of falling short of listing norms as it has been trading below $1 since Feb. 14.
American Apparel said it plans to grant the underwriters a 30-day option to buy up to $4.6 million more shares.
The company, known for its racy advertising and bright “Made-In-America” clothes, also said it expected its net loss for 2013 to widen to $107 million, or 97 cents per share, from $37 million, or 35 cents per share, in 2012. (Reporting by Maria Ajit Thomas in Bangalore; Editing by Don Sebastian)