American Apparel May File For Bankruptcy, Potentially Liquidate (APP)

Clothing retailer American Apparel APP warned it may file for bankruptcy, and could potentially be forced to liquidate, as the company is faced with a cash crunch. Shares plunged to 80 cents on the news, down 16 cents or 17% on the news. The company reported a loss of 27 cents per share on revenues of $144 million. This is down sharply from a year ago, when it earned 4 cents per share on revenues of $158.1 million.