Rumors have been going around for quite a while but now it’s official: American Apparel is on the edge of bankruptcy. The eccentric fashion magnate behind the clothing chain, Dov Charney admits that the label is close to closing.

Investigation by the US attorney’s office in New York has to figure out why its auditor, Deloitte & Touche, left without warning last month. The shares of the company, once $14 on its heyday, dropped down to 75 cents a week ago. With depths as much as $120 million, there is nothing much left of the american dream with about 10.000 employees in 20 different countries losing their jobs, unless the British company Lion Capital will rescue it with a loan of $80 million. Enough with the calculating, what kind of brand is American Apparel anyway?

There’s so much in the name and they’re proud of it, American designed and american made apparel founded in 2003, started selling cotton basics for teenagers in 2 L.A. stores. Not completely scandal free, the 41 year old Canadian founder had 3 sexual harassments cases filed against him, all settled before going to court. One of them was that he undid his belt, fondling around his crotch while discussing business. Well don’t we all pickle our nose sometimes? His liberal way of life extends to the open-minded and free spirited advertisement campaigns where the garment that’s being sold is accompanied with an almost-naked girl. A girl, not a woman. It seems like Deloitte & Touche stopped being American Apparel’s auditors earlier after repeatedly finding out financial flaws in the controls. Is this the end of the basic quality cotton line?