document: American Apparel warns it may file for bankruptcy Troubled clothing chain American Apparel Inc. , losing money and faced with a cash crunch , says it may have to file for Chapter 11 bankruptcy protection . The company , which has a store in Trolley Square in Salt Lake City , warned in a filing with the Securities and Exchange Commission it could take the action if it ca n't improve its sales or cash position or find other sources of financing to keep it afloat . The retailer known for its sexually provocative advertising also indicated that even if it does file for bankruptcy , it may be forced to liquidate if it ca n't put together a reorganization plan or find bankruptcy financing . American Apparel has been plagued by financial and image problems . On Friday the company reported a fourth-quarter loss of $ 19.3 million , or 27 cents per share , compared with net income of $ 3 million , or 4 cents per share , a year ago . Revenue for the three months ended Dec. 31 dropped 9 percent to $ 144 million from $ 158.1 million . It shares lost 6 cents Friday , to close at 90 cents . American Apparel 's full-year results were also rough . The retailer posted a loss of $ 86.3 million , or $ 1.21 per share , compared with earnings of $ 1.1 million , or 1 cent per share , in the previous year . Annual revenue declined 5 percent to $ 533 million from $ 558.8 million . The losses are only one facet of American Apparel 's problems . In October , it amended a credit agreement with Lion Capital so it could get some breathing room on its financial performance . American Apparel received a temporary waiver on its credit agreement with Lion Capital and others in February as it tried to avoid defaulting on another agreement . Copyright 2011 The Associated Press . All rights reserved . This material may not be published , broadcast , rewritten or redistributed .
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