City centre chain shuts down two days before Christmas

US fashion chain American Apparel pulled down the shutters on 12 UK stores yesterday including the shop in North Street, Brighton.

A total of 147 employees have lost their jobs nationwide.

The firm plunged into administration in November after falling foul of tough trading conditions in Britain and America.

Jim Tucker, joint administrator and restructuring partner at KPMG, said: "Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realise value for the creditors."

This latest bodyblow for Brighton city centre comes just one week after we revealed that retail giant HMV was shutting its shop in Churchill Square next month.

Its lease had come to an end and staff said the store faced a rise in rent, something Churchill Square management refused to be drawn on.

American Apparel's website simply said yesterday: "We will no longer maintain an online presence in the UK.

"We would like to express our gratitude to you for your business."

The branch in North Street, Brighton, sold fashion items all produced in Los Angeles.

The cult fashion brand traded on its "Made in Downtown LA" reputation.

Mike Sparkes, dealer principal for electrical store Bang and Olufsen of Brighton and Hove, told The Argus this week times can be tough for businesses in the city.

He pointed to price increases in most sectors, reduced margins, high rents and high business rates.

He said: "Owning your own business doesn’t get any easier.

"We cannot afford to get complacent and the need to keep a close eye on business in 2017 will be vital."

American Apparel filed for US bankruptcy protection in October 2015.

The Los Angeles-based firm said last year that it had reached a restructuring deal with 95 per cent of its secured lenders to reduce its debts.

The company flagged up problems with its finances in August 2015, saying it might not have enough cash to keep the firm going as losses widened.