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American Apparel to Raise Capital After Posting Wider Loss

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American Apparel Inc., the retail chain facing a legal fight with ousted founder Dov Charney, plans to raise money with a $10 million stock offering after posting a wider first-quarter loss.

The stock sale will be “at the market” -- meaning shares are sold from time to time rather than in one big block -- with the proceeds going toward working capital and general corporate purposes, the Los Angeles-based company said in a statement Monday. American Apparel’s net loss expanded to $26.4 million, or 15 cents a share, from $5.47 million, or 5 cents, a year earlier. Revenue fell 9.4 percent to $124.2 million.