Following the announcement of a total 2010 loss of $86.3 million, American Apparel says it may have to file for bankruptcy if it can't improve sales or get more money some other way. It gets worse:
The retailer known for its sexually provocative advertising also indicated that even if it does file for bankruptcy, it may be forced to liquidate if it can't put together a reorganization plan or find bankruptcy financing.
Over the past year, American Apparel's stock has traded from a low of 66 cents to a high of $3.62. In March alone, CEO Dov Charney was slammed with two sexual-harassment lawsuits, the fate of which remain to be seen.
American Apparel has come dangerously close to bankruptcy before but was saved by its investors. It has also come dangerously close to being delisted from the stock exchange but was saved by angels. Maybe the angels are getting a little burned out.