American Apparel Inc. said that it may not be able to sustain operations as a going concern for the next 12 months, even after the clothing chain increased its credit line, Bloomberg News reported yesterday. A group of lenders, including hedge fund Standard General, replaced its $50 million credit facility with a larger $90 million one, the Los Angeles-based retailer said yesterday. The company said last week that Standard General intended to take this step. The clothing maker has been in turmoil since it suspended and then fired founder and Chief Executive Officer Dov Charney for alleged misconduct. Charney, who was replaced as CEO by Paula Schneider, has sued over his ouster and said the allegations against him are baseless. The retailer also yesterday confirmed second-quarter results that it reported on a preliminary basis last week. Sales sank 17 percent to $134.4 million, and the net loss expanded to $19.4 million from $16.2 million. As of Aug. 11, the chain had $11.2 million in cash. It has a bond-interest payment of about $13.9 million due on Oct. 15.
