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American Apparel plans closures, layoffs

One of the American Apparel stores in Manhattan

One of the American Apparel stores in Manhattan on June 19, 2014. The company announced July 6, 2015, that it would be closing some locations and doing layoffs. Credit: Getty Images / Andrew Burton

American Apparel has announced that it will close stores and lay off employees as it tries to cut costs and turn around its fortunes after a period of corporate turbulence.

The cuts are expected save a total of $30 million, the company said Monday, though it did not say how many shops or jobs will be affected.

American Apparel has 239 retail locations and a total workforce of around 10,000. The sole American Apparel store on Long Island is at Roosevelt Field mall. An American Apparel representative wouldn't say whether it would be closing.

"We are committed to turning this company around," chief executive Paula Schneider said in a statement. These "are necessary steps to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long-term profitability."

Schneider said her focus is to remedy problems that caused "steep losses" over the past five years. In that time, American Apparel has suffered more than $300 million in losses, largely under founder and former CEO Dov Charney, who was forced out by the board of directors in 2014.

The retailer remains embroiled in a nasty legal spat with its spurned founder, with lawsuits filed by both sides.

Schneider has made numerous changes to American Apparel since taking over in January, including revamping its edgy and oft-maligned marketing strategy, remaking the organization's management structure, and bringing in more stringent forecasting and budgeting processes.

With Newsday reporter Aisha Al-Muslim

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