It's a sad time for American Apparel as they begin to file for bankruptcy due to a massive drop in sales and an abundance of reoccurring debt. The basics brand known for its huge teenage following has been finding it hard to keep up with its fast-fashion rivals, losing $340 million in the past five years. A number of other labels have had to follow suit as customers are wanting up-to-the-minute designs, which many companies - American Apparel included - cannot churn out at such a rapid rate.

This is definitely not the first time American Apparel have come under scrutiny - with ex CEO Dov Charney being accused of a number of allegations including his outlandish spendings of company money. However, the company's Chief Executive Paula Schneider is committed to keeping the label alive (at least in the U.S), claiming they will continue to produce their garments in America while focusing on the heritage of the brand. With so much ongoing speculation, it looks like we'll just have to wait and see.

Read the full story over at The New York Times.

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