They said/We said: Groupon saves the day for American Apparel. Who woulda thunk it?

Photography by Stephen Shugerman/Getty Images
Photography by Stephen Shugerman/Getty Images

Well, it looks like the future of American Apparel is a little sunnier than previously predicted. After scandal and bankruptcy trailed the company for most of last year, they have recently reported $157.9 million in sales during the fourth quarter of 2011, a 9.7 per cent gain over the same period in 2010.

And what can we attribute those gains to? Groupon, it seems. In the last few months, American Apparel turned to the popular flash coupon site—as well as similar sites like TeamBuy—to offer their goods at special discounted rates, and it seems to have paid off. Approximately 100,000 American Apparel deals were sold in total, resulting in 150,000 garments being scooped up in December alone.

As for American Apparel’s infamous frontman Dov Charney? He boasted to Flaunt mag that the company is predicted to double their $20 million in earnings (and that’s before interest) in 2012. We sure hope he doesn’t do anything to kibosh the plan, as we are definitely not ready to say goodbye!


The Cut?: “This makes sense, really, considering compulsive Groupon users fall into roughly the same demographic as American Apparel’s young, quasi-hipster target consumers.” [The Cut

Fashionista: “Charney told WWD of his recent road trip, ‘We’re methodically going through each door, inspecting them and looking for ways to improve productivity.’ (Hopefully he’s also going through some of his own personal doors and will avoid any further sexual harassment controversies; the last thing a beleaguered company needs is another lawsuit splashed all over the morning news shows.)” [Fashionista]

Paige Dzenis, associate online editor: “I would honestly be more interested in American Apparel’s success if dirty Dov Charney could stay out of the headlines. This is actually the first time I’ve seen his name in connection with real business matters—and it still doesn’t change the fact that I pass by a handful of former American Apparel locations on my daily commute to and from work. Snap!”

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