After filing for bankruptcy on Oct. 5, American Apparel has devoted most of its time and attention to its Chapter 11 cases (and related lawsuits), which left it unable to file a proper quarterly report for its third quarter ending Sept. 30. Instead, the Los Angeles-based retailer, whose value has sunk from a high of $1 billion in 2007 to somewhere between $180 million and $270 million this year, filed an estimated report on Tuesday with the U.S. Securities and Exchange Commission.
The results show that American Apparel is continuing to lose money, to the tune of $18.76 million for the quarter — about the same amount of money it lost during the third quarter last year. Net sales totaled $126.1 million, a 19 percent decrease year-over-year. The retailer attributes the decline to "the unfavorable impact of foreign currency exchange rate changes and store closures," as well as to cost-cutting initiatives announced in early June, which negatively impacted comp sales.
The company was unable to say when it expects to file its third-quarter earnings.