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American Apparel may start closure of UK stores



The US fashion retailer, American Apparel, is considering disposing of its stores in Covent Garden, Bristol, Liverpool, Leeds and Nottingham.
American Apparel and has already appointed Kitchen La Frenais Morgan, a UK retail property specialist.

This will result in the group retaining four stores outside London, in Manchester, Glasgow, Birmingham and Brighton.  It is expected to retain its other nine stores located in London, along with a concession in the department stores, Selfridges.

The chain became famous for its Made in the USA clothing and its controversial ads, but it has been struggling to repair its shattered reputation and battered finances.  The group appointed four new directors, including the first female director, to its board during July.  This shake-up of the board was a condition stipulated by Lion Capital, an investment firm which offered the group a funding investment of $25m.  The finance chief was replaced last month and the appointment of turnaround specialist, Scott Brubaker, as their interim chief executive was done at the same time.

Dov Charney, the founder of the company, was ousted by the board during June, while allegations of misconduct are investigated.  He still acts as a consultant to the brand.

No comment was offered by both Kitchen La Frenais Morgan and American Apparel.



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