American Apparel’s CEO Says Expect More Store Closures

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After American Apparel's latest bankruptcy court ruling approving the retailer's reorganization plan, AA founder Dov Charney posted a message on Medium stating that he doubts that American Apparel's "current management has the talent to bring it back to health."

American Apparel's current CEO Paula Schneider would beg to differ, and says that the turnaround is already working. In an interview with Forbes, she said that AA will grow once it exits Chapter 11.

"We have liquidity," she told Forbes. "It doesn’t show in the numbers yet, but we’ve implemented a turnaround."

The company's already closed struggling stores since it filed for bankruptcy, and Schneider says to expect more store closures.

Top priorities for American Apparel going forward involve focusing on its wholesale business and the nitty gritty operation details.

"These aren’t sexy things," she said. "It’s making sure a size 6 is a size 6 in every pair of bottoms."

Schneider's only been American Apparel's CEO for a year, and since then, she's been faced with bankruptcy, legal battles with Charney, and a full-fledged revolt by AA employees.

"I’ve been drinking from the firehose every day," is how she described her tenure to Forbes. "I’m happy that this is over. The good news is that we’ll emerge."