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Will Wholesale Save The Floundering American Apparel?

American Apparel has been in trouble for some time now (and we’re not just talking about those sexual abuse allegations which, as of today, just got about four times worse). The business side of things keeps looking more and more dismal. The debt, the delisting scare, the management changes — it’s all just really messy. Looking to stay afloat, the company is now going to give wholesaling a try.

A new chief sales development officer has been brought in to makes things happen, and he sounds like a bit of a loose cannon. Explains the 60-year-old “hard-partying” Marty Staff: “I’ve never been the adult supervision before.” Well then! Staff does make a somewhat valid point about the brand, however, postulating that the American Apparel name is better than the business itself. While we associate the name with porny images and spandex, we get what he’s saying.

Since AA’s stuff isn’t selling as much as it should in its own stores, Staff is banking on the “hot brand” having better success in other stores. Explains Dov Charney: “In the words of that old Yiddish proverb: ‘Get me an order. Everything else will take care of itself.’” Sure. The company will also be pushing women’s denim.

It probably doesn’t help that operations are not particularly efficient right now. AA lost 3,000 of its 5,600 production line workers over a year ago following a government investigation into improperly documented employees. Yeah, like we said, it’s a big ol’ mess

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