American Apparel Getting Their Ass Handed to Them

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All the controversy American Apparel generates over publicity stunts like that Best Ass contest apparently isn't getting converted into sales: The L.A.-based clothing manufacturer reported a first-quarter operating loss of $17.6 million, and they may be close to defaulting on an $80 million loan. They're taking a big spanking on Wall St. today, but a tricky ownership arrangement means they could come out of this ok. Just in case, stockpile t-shirts massively when the July warehouse sale rolls around. [LA Observed]