It’s transition time for American Apparel.
After a tumultuous last couple of years, during which the company booted its controversial CEO and emerge from bankruptcy, it’s now pondering a possible move out of Los Angeles and putting itself up for sale.
The retailer is considering a move to either North Carolina or Tennessee, according to multiple reports. That would save the company a significant amount of money. This year, 500 jobs were removed.
Minimum wage in those states hovers around $7.25. California plans to raise its minimum wage to $15 an hour within the next four years.
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American Apparel has also hired an investment bank to explore a possible sale, Fortune.com reports.
In a statement to the site, a spokesperson was quite vague:
As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives.
A potential sale may be further complicated due to a lawsuit filed in Los Angeles Superior Court.
According to court documents, former employees are suiting American Apparel for “wrongful termination, failure to pay overtime and retaliation for expressing concerns about working conditions and discrimination.”
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