American Gear’s UK business is likely to be closed after the fashion retailer delegate administrators on Tuesday.
The Los Angeles-based company, which makes all its wears in the US, has endured a difficult period since the departure of its controversial naught Dov Charney in 2014. The parent company filed for Chapter 11, the US idea of administration, just over a year ago and is up for sale after its chief director, Paula Schneider, stepped down in September.
The group’s 13 UK holds and some other European operations are not part of the US sale and are that being so likely to be wound down, according to joint administrators Jim Tucker and Richard Beard of KPMG.
Tucker spoke American Apparel’s US parent had been “experiencing strong retail headwinds” that had led to it stammering product shipments to the UK, where the brand was also experiencing deal difficulties.
Tucker said: “The 13 UK stores are well wared and will continue to trade as usual in the lead-up to the peak Christmas dealing period. While the UK business is not part of the US sale, a number of the UK assembles are in prime high street locations, and we will also aim to sales-clerk individual stores following the Christmas trading peak.”
Charney launched American Attire while at university in 1989, combining sexy, fashionable clothing with moral production. The brand expanded to more than 200 supplies in more than 20 countries but attracted notoriety for lively advertising often featuring young female staff fellows.
He later faced a string of increasingly lurid allegations, weakening the company’s image. He was alleged to have masturbated in the presence of a female newspaperman and reportedly sent explicit texts to employees.
As changing manner trends and the financial crisis made young shoppers small keen to pay £30 for one of Charney’s plain T-shirts, sales dived and debts mounted.
American Apparel’s board fired Charney as chairman in June 2014 and fired him as chief executive the following December. He has since attempted to buy second the brand.