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American Apparel faces one challenge after another

Many Colorado business owners will do whatever it takes to avoid the costs and time associated going to court with other businesses, consumers and investors. Employers would likely rather focus on improving the health and success of their business. However, there are times when business litigation is unavoidable. Business owners may find themselves facing legal concerns related to employees, business practices and finances. 

Most companies would want to avoid having these disputes publicized and brought into a court room, and there are many ways that this can be possible. However, some business owners welcome the controversy and even believe that it helps sell a brand. Could this be true?

Folks in Colorado may have shopped at American Apparel stores before or passed by one of their locations, but it may be more likely that people are familiar with the company's controversial and scandalous public image. This awareness of the brand has contributed to what an American Apparel spokesperson is calling a stronger company.

But the fact is that American Apparel has been wrapped up in legal disputes for years. They have reportedly lied to investors about performance, made questionable employment decisions, and have been accused of racist and discriminatory marketing and hiring practices. The company has paid out hundreds of thousands of dollars to settle legal disputes, but they still say that their image and brand is stronger than ever.

One thing that American Apparel has made sure to do is learn from past mistakes, according to the spokesperson. He says that while they have faced a number of issues, they have learned their lesson and found ways to solve problems. But this can be quite an expensive way to learn a lesson. Companies looking to avoid this route can speak with an attorney who understands business law. In many cases, it can be possible to resolve disputes out of court and on amicable terms. 

Source: The Huffington Post, "10 Scandals That Totally Rocked American Apparel," Harry Bradford, June 5, 2013

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