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July 30, 2011  | by: Stephenie Miller

American Apparel

It is no secret that American Apparel has been struggling to stay afloat.  They narrowly escaped filing for bankruptcy earlier this year, but they are still having trouble generating sales.  The fact that CEO, Dov Charney, is facing allegations of sexual assault certainly doesn’t help matters.  Instead of throwing in the towel like many other struggling businesses have been forced to do, American Apparel has come up with a new way to stay alive.  The clothing retailer is partnering with eBay to target the online market.

The partnership is expected to be beneficial for both eBay and AA.  The average customer of eBay is 10 years older than American Apparel’s current shoppers, so they are hoping to reach a whole new group.  eBay is also wanting to target a younger market, and AA can certainly bring that.  Even with the commission that American Apparel will have to pay to eBay, they expect to generate millions of dollars in sales in just the first year.

For the sake of my favorite v-neck t-shirts, I hope AA can stay in business and  that Dov Charney has learned from his mistakes.  American Apparel is scheduled to launch on eBay September 1.

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