It looks like American Apparel‘s days are numbered.
CEO Dov Charney is this close to breaking EBITDA covenant — meaning if the company doesn’t meet the requirements by September 30th (which is VERY likely) they’ll default on their revolving credit agreement and won’t be able to borrow any more.
AA also said they “may not have sufficient liquidity necessary to sustain operations for the next twelve months.”
Sucks to be them.
[Image via Getty Images.]