American Apparel Delayed Annual Report Performance Low Tide

American Apparel Inc. disclosed that it is now discussing with Capital One Financial Corp. to amend the credit terms to obtain the largest single shareholder of Standard General LP $15 million in loans. Standard General LP last year promised to borrow $25 million from American Apparel Inc. in exchange for Board of directors It reorganized and bought the American Apparel Inc. bond for the first time at $10 million. Now Standard General LP has removed 5 of the 7 directors of the Central Committee of American Apparel Inc. and joined the 4 directors nominated by them to control the board of directors.

It is reported that American Apparel Inc. and Standard General LP are drafting paperwork for the remaining $15 million loan. It is expected that a bond interest rate of nearly US $14 million will arrive before April 15th. As of December 31, 2014, the net cash of American Apparel Inc. was only 8 million US dollars, which was further reduced than the 9 million 400 thousand US dollars at the end of the three quarter, but at the same time, it had the 13 million dollar lending capacity provided by Capital One Financial Corp., but this amount had dropped to only 6 million US dollars in March 13th.

American Apparel Inc. also released the full year forecast for December 31, 2014 as of December 31, 2014. achievement Estimated annual net sales totaled 609 million US dollars, down 3.9% from US $634 million in fiscal year 2013, which means that sales in the four quarter decreased by 9.2% to US $153 million 600 thousand compared with the previous quarter.

The annual net loss is expected to be reduced to $69 million from $106 million in the previous year, and the loss per share has been reduced from $0.96 to US $0.43. Sales decline during the year and higher retail store impairment offset lower operating expenses. Gross margin was 51%, unchanged from the previous year.

We also reported yesterday that the sale negotiations between American Apparel Inc. and private Holdings Company Irving Place Capital have stalled.

Behind it was Irving Place Capital, supported by Dov Charney, former chairman, President and CEO of American Apparel Inc., who bought American Apparel Apparel in December last year. Bloomberg quoted market sources saying that after several months of negotiations with American Apparel Inc., Irving Place Capital had shaken its valuation and felt that the American Apparel Inc. board preferred to finance the company that redeemed the company's continued losses, rather than seeking sale. It is reported that more than 10 potential buyers including Irving Place Capital have signed a confidentiality agreement.