Accounting giant KPMG announced on Tuesday that it has been appointed as administrator in charge of American Apparel’s retail and wholesale business in Britain, likely meaning that the retailer will be closing its U.K. stores. American Apparel is up for sale, but operations in the U.K. and other parts of Europe aren't part of the deal, according to a statement from KPMG. Jim Tucker, a restructuring partner at KPMG, told the Los Angeles Times, “A number of the U.K. stores are in prime high street locations, and we will also aim to sell individual stores” after the holidays.
Total Retail’s Take: Things aren't looking good for American Apparel. After filing for bankruptcy last year, the company lost its CEO after two years of turmoil caused by the firing of Don Charney, American Apparel’s founder. KPMG reports that American Apparel has already stopped shipping merchandise to its U.K. stores. We might not have to wait long to see the company’s U.K. business come to an end.