The Fate Of American Teen Clothing Brands: Closing Stores Or Bankruptcy

Young garment retailers are losing market share, leading to more and more brands filing for bankruptcy.

Since then, at least eight teenage clothing retailers have filed for bankruptcy under brutal competition and sales stagnation, including American Apparel, Aeropostale Inc, Pacific Sunwear of California Inc, Quiksilver, Sports Authority, and MTV.

Last year, American Apparel, an American clothing retailer known for its highly suggestive advertising, formally declared bankruptcy. Its market value exceeded 500 million dollars, and today it is only 20 million. Its stock price has been below $1 for a long time and is facing the New York stock exchange.

At the peak of the brand, American Apparel once had more than $600 million in turnover, but now the brand revenue has been severely cut down, too much inventory surplus and inefficiency of the company. Now the company is trying to pform the sexy dress style of the former CEO Dov Charney. In order to reduce the operating cost, it is reported that the company is considering moving the Losangeles headquarters to a cheaper rent place.

Biography Richard Hayne stressed that the pformation of fashion retailing is taking place. Once it becomes a trend, there is nothing to stop. Some competitors of Urban Outfitters are closing their stores at a reasonable speed, but this is a positive thing for the industry. Everyone is talking about closing stores, which means the change is coming.

There is no doubt that the change implied by the CEO is the impact of the electricity supplier.

Last week, A ropostale ropostale, a struggling youth apparel brand, finally reached an agreement with the bidding consortium. The brand group Authentic successfully won A ropostale, saving A e ropostale 229 store and over 5 thousand jobs.

A e ropostale was founded in 1980 by R.H. Macy's & Co. It was once the most popular youth clothing brand in the United States. Its strong sales force pressed Nike, Adidas and other sports brands. It once dominated the clothing market of American young people with American Eagle Outfitters and Abercrombie & Fitch.

In May of this year, A e ropostale began filing for bankruptcy protection.

A e ropostale landed in the capital market in 2002, and its stock on the New York stock exchange has been delisted in April because its performance has continued to suffer.

According to one data, the company operates 739 stores in 50 states, with assets ranging from US $100 million to US $500 million, but liabilities remain between 1 and US $500 million.

According to Reuters, the main reason for the bankruptcy of A ropostale is that consumers have suffered serious losses in recent years due to the fast fashion and the pfer of electricity providers.

Last month,

The company has hired an investment bank, Houlihan Lokey, to discuss the sale of the company.

Only 6 months after American Apparel announced bankruptcy, the former founder and CEO Dov Charney finally decided to step down because they could not reverse the company's losses. Now American Apparel has decided to sell the company again.

In January of this year, with the support of investment company Hagan Capital Group and Silver Creek Capital Partners, Dov Charney would like to spend $300 million.

The American Apparel company was repurchased, but finally American Apparel declined its purchase request.

Last week, the representative of the US youth clothing brand Abercrombie&Fitch released its second quarter results, showing that its sales fell for the 14 consecutive quarter, and the company said it would close 60 stores.

In the second quarter, Abercrombie&Fitch lost 13 million 100 thousand US dollars, or 19 cents per share, compared with net profit of 8 million US dollars last year. Due to the decline in the number of brand stores opened in the mall, the company has lowered its performance forecast for the year.

Abercrombie & Fitch is the costumes for retail companies's recent poor quarterly earnings report, which has been affected by the global slowdown and major US consumers.

The impact of change.

In the January, Gap group took away its former marketing vice president, Craig Brommers, as the chief marketing officer of Gap group.

At present, the performance of American Apparel Retailing is becoming more and more uncertain. The profit of Urban Outfitters second degree Urban Outfitters has gone up, but its CEO Richard Hayne still worries about the prospect of fashion retailing. He revealed that it has made preparations for reducing stores in the apparel retail market.

Urban Outfitters began to pform in the past few years. Now its consumers' household products consumption and catering expenses occupy most of the total consumption, while the consumption of clothing on the consumer is decreasing year by year.

Urban Outfitters expressed the hope of using the changes and experience in the clothing market to expand other fields. Earlier last year, Urban Outfitters bought a pizza chain called Pizzeria Vetri.