American Apparel has announced they’re closing stores and laying off employees under the direction of its new CEO Paula Schneider.
Over the next year and a half, Schneider will cut $30 million in cost to get the brand back on track after its reputation was tarnished by founder and former CEO Dov Charney.
“We are committed to turning this company around," Schneider told CNN Money.
American Apparel will close stores in “unprofitable and oversaturated markets” and open new ones in “profitable fast-growing territories."
Schneider has a big undertaking following the ousting of Charney, who was fired for alleged misconduct. He has since sued the company with about 20 lawsuits.
Over the past five years, American Apparel has seen $340 million in net losses, USA Today reports.
"Today's announcements are necessary steps to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long-term profitability,” Schneider said in a statement.