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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.
"...There can be no guarantee that (American Apparel) will be able to raise such additional capital," the company added.
American Apparel has been posting losses for last five years. During that period, its market value shrank to $90 million from $540 million.
The company, which has about 10,000 employees, did not disclose how many jobs it would cut or the number of stores it would close.