American Apparel era coming to an end?

American Apparel is about to announce a substantial loss in the second quarter due to slumping retail sales and high production costs. The costly production is a direct result of hiring over 1,600 new manufacturing workers, after last year's layoff of over 1,500 alleged illegal aliens and the transition to more complex clothing styles.

"The Company’s current operating plan indicates that losses from operations are expected to continue through at least the third quarter of 2010. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern," American Apparel said.

Will we be buying our basics at Hanes by this month next year?

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