Why did American Apparel fail?

Why did American Apparel fail is due to combination of financial mismanagement, heavy debt, controversial leadership, increased competition, and changing fashion trends, leading to two bankruptcies. American Apparel, founded 1989 in Los Angeles, California, by Dov Charney, grew rapidly to over 250 stores and 10,000 employees, with factory in downtown LA making basics, peak revenue over 600 million in 2013, known for made in USA and provocative ads. Reasons for failure include heavy debt of over 200 million dollars from expansion, with company borrowing heavily to open stores, leading to interest payments it could not afford. Second, leadership controversy, founder Dov Charney faced multiple lawsuits for sexual harassment and misconduct, creating toxic culture and distracting management, with board firing him in 2014, causing turmoil. Third, competition from fast fashion brands like H&M, Zara, Forever 21, and online brands like Shein offering cheaper basics, undercutting American Apparel's higher prices for made in USA products costing $20 to $40 for t-shirts vs $5 to $10 at H&M. Fourth, fashion shift away from basics and American Apparel's sexualized ads becoming less acceptable, with brand image tarnished. Fifth, poor financial controls and overexpansion, with stores in expensive locations losing money. So American Apparel failed due to debt, controversial leadership, competition, high costs, and brand image issues, filing bankruptcy in 2015 and 2016, then bought by Gildan Canadian company in 2017.