American Apparel to Cut Costs, Warns May Need More Funds

Struggling teen clothing retailer American Apparel launched a restructuring plan to cut costs but warned it may not be enough to meet funding requirements in the next 12 months. The company, which is being sued by founder and former CEO Dov Charney, said on Monday it would cut jobs and close stores to slash costs by about $30 million over the next 18 months. American Apparel said there could be no guarantee that even after the restructuring it would have sufficient funds in the next 12 months unless it raised additional capital.