American Apparel makes profit in Dublin

The American Apparel business in Ireland recorded its first profit in 2013, when it made €21,687.

The business, which opened its shop on Grafton Street, Dublin, in July 2009, had accumulated losses of €1.34 million at the end of December 2013, according to accounts just filed.

The accounts state that the company is in the initial stages of developing its business and that its parent, American Apparel Inc, has provided a commitment to support the company for the forseeable future.

Of €1.46 million due to creditors within one year, €1.18 million was owed to connected companies, while on the debtors side, the equivalent figures were €911,035 and €852,923, the accounts said. A request for a comment from the company met with no response.

On Wednesday it emerged that the US chain has banned relationships between managers and “subordinates” and that failure to notify the company of in-house relationships where one employee has “perceived or actual influence over the other’s terms of employment” is a disciplinary matter.

The chain's founder and former chief executive, Dov Charney, was sacked last month for alleged misconduct. He had been suspended because of claims he sexually harassed colleagues and improperly bought travel for family members with company funds. Mr Charney said the allegations against him were "baseless". He said the relationships he had with staff were consensual.

In Ireland the chain has been the subject of controversy because of its advertisements. The Advertising Standards Authority (ASA) has upheld complaints that advertisements were offensive and gratuitous. The company defended itself against complaints which appeared to sexualise a child, saying the models involved were more than 18 years old.