By  on April 1, 2010

After years of fast expansion, American Apparel Inc. is experiencing some serious adolescent growing pains.

Over the past year, financing issues and stumbles in overseas markets have forced the trendy California specialty retailer to halt retail expansion and curb investments in its existing stores and marketing, negatively impacting top-line growth and same-store sales. At the same time, production problems in its much-hyped domestic manufacturing facilities in Los Angeles have driven up costs and lowered its gross margins and profitability.

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