According to reports, American Apparel Inc., a Losangeles based company, announced that its net loss in the third quarter expanded from $1 million 500 thousand 1 years ago ($1 per share) to 19 million 200 thousand US dollars (11 cents per share), and sales in the quarter were 155 million 900 thousand US dollars, down 5.3% last year, the biggest decline since the fourth quarter of 2010.

In June, the board of directors of the company decided to remove the CEO position of founder Dov Charney, accusing it of violating the company's sexual harassment policy and improper use of corporate funds. He vowed to regain his job, and his lawyer also believed that the board's allegations against him were groundless. Since then, Charney has increased its ownership stake to more than 40%, the people said. Plus, the board doesn't want to go with Charney. Happen The legal dispute decided to stay in the company, but reduced his role in the company.

The cash flow of American Apparel slipped from $10 million 200 thousand at the end of the second quarter to $9 million 400 thousand.

As of November 3rd, the company's credit limit was still $8 million 400 thousand. The company is also negotiating with Standard General LP to reach $15 million in unsecured credit. Agreement 。

In June, Charney reached an agreement with Standard General, a hedge fund company, to borrow 20 million dollars to increase its holdings. In order to reach this agreement, he agreed to share all his voting rights with hedge fund companies.

The investment company then pushed the restructuring of the American Apparel board. Standard General next gave economic support to the company and promised to invest $25 million in AA to improve its financial position, the first of which was to help American Apparel buy a $10 million loan from the private equity fund Lion Capital LLP.

American Apparel now from temporary CEO Scott Brubaker management. The good news is that due to effective control of costs, the company's EBITDA has increased from $9 million 800 thousand to $13 million 500 thousand.

In the last quarter, the legal costs and investigation costs caused by the Charney dispute that had been suspended were up to $5 million 300 thousand.