American Apparel Says They Might Run Out Of Cash Soon [PHOTOS]

Just last year, American Apparel had to undergo a huge management revamp and the brand has been having trouble since. Now, the brand says that customers can soon find stores closing among a massive lay-off in employees in an attempt to save funds.

It wasn't stated how many employees will be losing their jobs, but the press release states that the "cost reduction initiatives" to be made "are expected to reduce operating expenses by approximately $30 million over the next 18 months."

The statement also announced a new fall collection that could help increase profits for the brand. Chief Executive Officer of American Apparel Paula Schneider says, "Historically, the fall season has not been a major focus for the Company."

"We are beginning the process of re-merchandising the product assortment in our retail stores to increase productivity by SKU. The new styles are designed to increase revenue ass we continue to evolve our product offering during this important selling season," Schneider continued.

However, even the fall line might now be enough to help the company. Its stocks went down to 45 cents per share just on Monday - and they're roughly down 56% this year alone.

The statement cited, "Even if American Apparel increases revenue and cuts costs, there can be no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next twelve months without raising additional capital, and there can be no guarantee that it will be able to raise such additional capital."

Just in April this year, American Apparel had already let go of around 180 employees as their sales were still going down. The press release also noted that the company has been "fending off about 20 lawsuits and administrative actions" from the company's founder, Dov Charney, along with "his associates."

Here's to hoping that everyone's favorite hipster brand stays alive in the market.