American Apparel Shorts Triple as Sales Growth Stalls

Shorting American Apparel Inc. is back in style.

After a period of steady sales growth and a rising stock price, the maker and seller of clothes worn by hipsters worldwide has hit turbulence. The retailer has posted three straight quarterly losses, and preliminary results it released show revenue fell in the most recent quarter. American Apparel, led by Chief Executive Officer and founder Dov Charney, has disclosed that it amended debt terms, paid interest penalties and borrowed money at 18 percent interest while also laying the groundwork for selling stock.