American Apparel, the troubled fashion retailer, is trying hard to avoid bankruptcy as it scrambles to raise money to pay down US $ 15.4 million debt due in October. It is being said that American Apparel is struggling to find funds as it prepares to report a torrid set of financial results in the coming weeks. A bid to create more shares in the company to raise the cash was rejected by shareholders earlier this month. Few days ago in a statement the company had said that there can be no guarantee that it will be able to raise such additional capital, even if it increases revenue and cuts costs, there is no guarantee that the company will have sufficient financing commitments to meet funding requirements for the next 12 months without raising additional capital. The firm secured US $ 15million in funding from hedge fund Standard General. However, it is unclear how the American Apparel will raise the cash for October’s payment.
