Beleaguered American Apparel Inc. said it is hanging on by a thread.
With sales sliding and cash dwindling, the Los Angeles company warned Monday it may not have enough liquidity to keep operating for the next 12 months, according to a filing with the Securities & Exchange Commission. The losses may continue through the rest of 2015, the company said.
All these factors, American Apparel said, "raise substantial doubt that we may be able to continue as a going concern."
The warning comes as the company reported a second quarter in line with its original estimates filed with the SEC last week.