The retailer refused to comment on what it calls rumours or speculation

The retailer refused to comment on what it calls rumours or speculation

Troubled US retailer American Apparel has declined to comment on what it calls "rumour and speculation" that its days as a Los-Angeles-based manufacturer are over, and reports it is exploring a possible sale of the business. 

According to an article published by the New York Post, the retailer is making plans to relocate east, with the report naming North Carolina or Tennessee as potential new locations. The news comes just six months after the teen fashion retailer emerged from Chapter 11 bankruptcy following the implemention of a reorganisation plan.

American Apparel exits bankruptcy

But just two months later the retailer said it was to cut more jobs as part of plans to redesign its production processes and potentially outsource the manufacture of more complicated garments. 

American Apparel to cut jobs amid production redesign

Now, the company has declined to comment on the reported move, with a spokesperson telling just-style "American Apparel does not comment on rumours or speculation".

According to the New York Post, the facility, if it were to close, would affect some 50 workers.

Also this week, reports suggest the retailer has hired investment bank Houlihan Lockey Inc to explore a possible sale of the company. 

The spokesperson for American Apparel told just-style: "As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives."

Houlihan Lockey did not respond to just-style when asked to comment.

In May, the retailer announced it was using a crowdsourcing campaign to look for new ideas for made-in-US products such as footwear that it can sell in its stores and online.

American Apparel uses crowdsourcing to find new products

In January, Dov Charney, the chain's ousted CEO, joined forces with two private equity firms in a US$300m bid to buy back the retailer. The former chief executive, who was fired over alleged misconduct following a 2014 boardroom coup, teamed up with Hagan Capital Group and Silver Creek Capital Partners to try and win back the US fashion group he founded.  

Charney makes $300m bid for American Apparel