Shrinking pattern

Amer. Apparel: closings, cuts, layoffs

American Apparel is buckling and may fall under the strain.

It’s the result of five years of sales losses, some 20 lawsuits related to the ouster of its former CEO, Dov Charney, and an unwieldy $ 240 million debt that is taking a heavy toll.

On Monday, the LA-based retailer announced a $ 30 million costcutting initiative that will include an as-yet-undisclosed number of store closures and layoffs over the next 18 months — and that might not be enough to save the company.

It may also have to raise more capital, the company said, but the company was questioning whether it could even be able to do so.

“With a stock price of 45 cents a share, the Street is definitely saying a restruc- turing or bankruptcy needs to happen,” said Wunderlich analyst Eric Beder, who used to cover the company.

Chief Executive Paula Schneider, who took the helm in January 2015, is hoping for a turnaround.

“Today’s announcements are necessary . . . to preserve jobs for the overwhelming majority of our 10,000 employees and return this business to longterm profitability,” Schneider said in a statement.

Asource familiar with the company said most of the layoffs will be at the headquarters and at the 239 stores— not the Los Angeles manufacturing facility.

Schneider tapped an industry veteran, Christine Olcu, who was senior VP of retail for bankrupt MEXX Canada, to take over a new position as general manager of global retail.

The company will also unveil a new fall line that is meant to lift sales during a season that has “historically not been a major focus for the company.”

“You are seeing these fastfashion retailers that market to teens fall like flies because the major fashion accessory these days is electronics,” said Paul Huygens, a principal in financial restructuring firm Province Inc.