American Apparel Teams Up With eBay

LOS ANGELES (AP) — Struggling clothing company American Apparel Inc. is teaming up with eBay Inc. to create an online store within eBay’s auction web site due to strong demand for its products there.

The companies did not disclose terms of their multiyear partnership.

American Apparel CEO and founder Dov Charney said in a statement that eBay gets more than 30,000 searches for American Apparel each month. The company believes that the individuals performing the searches are not currently buying from American Apparel directly.

American Apparel said Tuesday that it expects the online store, which will debut in September, will become a multi-million dollar business within the first year.

Orders placed on eBay will be fulfilled by American Apparel’s Los Angeles factory. Products featured will include hoodies, t-shirts, jeans, and children’s clothing.

Earlier this month American Apparel said it received notice from the NYSE Amex Exchange that its board makeup is not in compliance with listing regulations.

The Los Angeles company has seen a number of its board members leave and since appointed others. However, the company’s audit committee still has only two members instead of the required three. The company’s board also consists of an unequal number of directors of different classifications.

The company has until July 2012 to regain compliance. American Apparel said it plans do so as soon as possible.

American Apparel has struggled with losses and staying afloat financially. The company warned in April that it might have to file for bankruptcy protection but later that month received a $14.2 million injection from a group of investors led by Canadian financier Michael Serruya and Delavaco Capital.

Shares of American Apparel added 13 cents, or 12.6 percent, to $1.16 in morning trading. Over the past year, the stock has traded between 66 cents and $1.90. EBay’s shares gained 16 cents to $33.96.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


One Comment

  1. Roger Stillman Jones says:

    that actually does make a lot of sense dude.

  2. Mike says:

    American Apparel hires and is very pro illegal immigration, I hope they see little profit from this.

    1. James says:

      Mike American Apparel is not pro-illegal immigration; they believe in immigration reform. Furthermore, they pay their workers a living wage and provide them with health insurance, and most importantly, they are keeping jobs here in the United States. Aside from the owner’s weird personal behavior, I think the company is a great model for other American companies, and I wish them all the best.

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