American Apparel Inc. announced on Monday a cost-cutting plan that will include store closings and workforce reductions as it fights the headwinds of a highly competitive and promotional retail environment. The apparel seller expects to reduce costs by $30 million over the next 18 months. The company said even if revenue increases and costs are cut, there can be no guarantee it will have enough financing commitments to meet funding requirements for the next 12 months without raising additional capital, or that it will be able to raise that capital. Separately, the company said it will unveil a new fall line, something that it hasn't done before. "Historically, the fall season has not been a major focus for the company," said Chief Executive Paula Schneider. "The new styles are designed to increase revenue as we continue to evolve our product offering during this important selling season." The stock was still inactive in premarket trade. It has tumbled 52% year to date, and has closed below $1 since Jan. 5.
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