Administration Apparel?

It's been brought to my attention that American Apparel has gone into administration ...why? ...how? I'm not exaggerating when I say every single college and university student has one or more of their hoodies. Serious. Walking down Market Street, Manchester I swear you'll see at least 20. That is the equivalent of 1 for every 10 steps.

And it's not just Manchester. On a recent trip to London, once again around Camden, Shoreditch and further out in Brixton the bright coloured hoodies with the white strings were in abundence! Perhaps it's the super-softness when you first buy them, the eye popping colours or maybe because everyone has one that makes them so popular. But still, Why has American Apparel gone into administration?

It all comes back to the word that's been hanging over us like some dead animal for the past couple of years: Recession. American Apparel's debts have now risen to £77.2m according to the Corporate Clothing Director-e and therefore has gone into administration.

Looks like they'll be closing down some of their 280 worldwide stores... bad times for students worldwide! But this isn't the first time AA have been in trouble. Nearly three years ago, the comapny received notice from Immigration and Customs Enforcement (ICE) in America, that it was facing a government inspection of the documents all workers must provide to their employers to prove they are legally authorized to work in America. 18 months later, ICE sent American Apparel a formal notice declaring that 1,600 of its workers did not have the necessary documents to work in America and that ICE could not verify the eligibility of 200 more. There was a temporary reprieve while AA's lawyers negotiated with ICE officials and the corporation gave the workers an opportunity to come up with acceptable paperwork. But late last year the hammer dropped, and American Apparel announced that the 1,800 workers, one quarter of its workforce, were being fired. BOO-YA!

Let's hope American Apparel manage to turn things round because I've gotta say, I live in my hoodie and intend on buying at least 3 more before the year is out. Perhaps my contribution alone may solve their debt issues... I spend way too much in that shop.