THE AMERICAN Apparel store on Dublin’s Grafton Street plans to remain open for business despite mounting debts at its worldwide operation and weak sales since last year.
A manager at the Dublin store yesterday denied reports that they would be closing the Irish operation less than 12 months after it opened.
The Los Angeles-based business reported earlier this week that it had slumped to an $18 million (€21 million) loss, was in grave danger of defaulting on a loan and warned there was “no assurance” it could raise enough cash to keep going.
Its shares lost 42 per cent of their value in response.
The company, which is known for splashing near-nude models on billboards, reported a 10 per cent fall in sales in the first three months of this year. The results were seen as especially troubling because competitors have posted healthy sales and stock growth in recent months as economic conditions improved.
American Apparel is paying a rent of €800,000 for the Grafton Street store which has retail areas of 460sq m (almost 5,000sq ft).
Owners Irish Life Investment Managers spent in excess of €4 million on remodelling and extending the former TSB Building and dropping the floor of the former banking hall to street level.
American Apparel employs 20 people in Dublin and over 10,000 in 280 stores across 19 countries. The chain has 13 outlets in the UK, including Oxford Street, Carnaby Street and Covent Garden in London.
