American Apparel Gets Dough from the UK

By on March 17th, 2009

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American Apparel, the uber-popular,  Los Angeles based- clothing store chain that made headlines with its risque pictures of its models wearing simple but revealing clothing as well as the antics of its founder, Dov Charney, who is best known for performing a private act in front of a reporter for “Interview Magazine.”

The company’s sexually charged ads and workplace culture, and pro-labor policies have gotten this company some marquee press and the sales to boot.  Charney once bragged, “I have the highest paid apparel workers in the world.”

But times have changed and for even the coolest, price-efficient retailers such as American Apparel are feeling its effects.  The Los Angeles Times reports that American Apparel, most recently considered bankruptcy but instead will receive $80 million from London-based Lion Capital who will, in return receive two seats on the Board of directors and the right to buy an 18% stake in the company.

American Apparel is still very popular among its young, stylish consumer base, and this cash flow will only help it to survive this current Economic downturn that has most retail operations tightening up its budgets and cutting corners to save money.

In times like these, usually the strongest brands survive.  And in this case, American Apparel has extra cash in the backseat.  Just in case.