KPMG appointed administrators at Glasgow retailer American Apparel UK

The group has 13 stores across the UK, employing 183 full and part-time staff.

The retailer said the US parent pulled inventory shipments to the UK in the face of “strong retail headwinds”.

While accounts for American Apparel (UK) Ltd and American Apparel (Carnaby) Ltd are listed as “overdue” on the Companies House website, most recent results show sales of £1.81 million in the 2014 year to December and a pre-tax loss of £1,780 for American Apparel (UK) Ltd and £24.2 million in sales for American Apparel (Carnaby) Ltd over the same period, down from £26.7 million in 2013, and posted a pre-tax profit of £152.

Joint administrators from KPMG were appointed to American Apparel (UK) Ltd and American Apparel (Carnaby) Ltd this week.

KPMG said: “American Apparel’s brand and US business is being sold, although the UK and certain European operations are not part of the sale and are therefore likely to be wound down.”

The administrators said all the UK stores are continuing to trade and no redundancies have been made.

Joint administrator Jim Tucker said: “The American Apparel group has been experiencing strong retail headwinds, which has culminated in the US parent deciding to stop inventory shipments to the UK.

“The UK business has experienced similar trading difficulties, resulting in the appointment of administrators.

“The 13 UK stores are well stocked and will continue to trade as usual in the lead up to the peak Christmas trading period.

“Whilst the UK business is not part of the US sale, a number of the UK stores are in prime high street locations, and we will also aim to sell individual stores following the Christmas trading peak.”

As well as Glasgow, American Apparel also has stores in Brighton, Nottingham, Bristol and Leeds, and eight in London, at Camden High Street, Carnaby Street, Covent Garden, Kensington High Street, Oxford Street, Shoreditch, Westfield Stratford and Westfield White City.