American Apparel, Inc, beloved retailer to bargain seeking fashionable teens and young adults, is facing ruin after a host of financial issues. The retailers downfall, whose stock is traded on the NYSE, started last year when the majority of its experienced work force was found to be undocumented forcing them to be fired after a federal labor force investigation.
The company operates 285 stores in 20 countries and is known for its leggings, T-shirts, sexy ads and low price points. The low price points were garnered in great part due to a low wage labor force that is very efficient and highly experienced. Last year the company fired a quarter of its work force after a 17-month investigation found 1,800 workers in California did not have proper documentation to either be in the country or work in the U.S.
The investigation and forced firings were one of President Barack Obama’s earliest efforts to showcase his harsh stance on illegal immigration. Currently the company’s stock faces delisting, has dropped in value by 90% and is facing shareholder lawsuits.
