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August 09, 2011  | by: Abby Adesanya

American Apparel

Looks like American Apparel will still be around after all, with the announcement of the extension of their partnership with e-commerce giant, ASOS. The company faced bankruptcy after revenues declined and debts rose to $120 million. Recently, in order to combat failing sales, the company worked with eBay to open their first online lifestyle shop and now the partnership with ASOS foresees a safer outlook, with the UK-based retail site boasting a total of 3.7 million members and a 63% rise in revenue for the first quarter of this year.

CEO of American Apparel, Dov Charney, states:

“American Apparel began as a wholesaler and built its reputation as a brand through high-end boutiques and trendy shops. Collaborating with an independent, forward-thinking site like ASOS is a return to our roots in a way. We’re continuing to explore these options and grow our business through them.”

The expansion will allow inventory to be purchased directly by ASOS through American Apparel’s wholesale service, which will then be marketed and sold on ASOS’s retail website. Countries like Denmark, Russia, and New Zealand, where American Apparel is not currently located, will also be able to purchase products from the wholesaler through ASOS. Products currently offered include menswear, womenswear, swimwear and accessories, though footwear will be introduced in 2012.

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