American Apparel Says it May Have to Go Out of Business

Troubled clothing retailer American Apparel said on Monday that its business and cash position have deteriorated so badly that it's not even sure it will be able to stay in business, in its strongest warning yet to investors about its prospects. American Apparel reported that sales for its second quarter fell 17.2 percent to $134.4 million, continuing a downward spiral in the last several years that's severely drained its coffers. The company said it doesn't expect business to materially improve in the next four quarters and that it may not have enough cash to get through that period.