Spandex-legging purveyor American Apparel Inc. (NYSE: APP) has worked some fresh flexibility into its capital structure, even as it blames further second-quarter sales declines on stale product.

American Apparel admits its future is up in the air in an Aug. 17 quarterly filing with the U.S. Securities and Exchange Commission. The company says there is substantial doubt about its ability to continue as a going concern, or without the threat of liquidation, because it may not have the cash to stay in business for the next 12 months.

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