Summary of a story in The Daily Caller, April 4, 2011

The US clothing company American Apparel, whose CEO, Dov Charney, has recently been accused of sexual harassment by four former employees, has announced it may file for bankruptcy.

According to Business Insider American Apparel has been facing financial difficulties for some time and was left with losses of $86 million in 2010.

In addition to facing a $250 million lawsuit (see WVoN here) the company had also previously been in trouble from the Advertising Standards Authority for its provocative advertising practices which could be seen to sexualise models who appear underage.

Amy Siskind of The New Agenda believes the company may be facing a backlash after the bad publicity the company has received both for the ads and Charney’s alleged sexual offences.

She doesn’t mince her words: ”we’re not at all surprised to see this company go out of business and we hope their CEO ends up in jail where he belongs”.