American Apparel Inc., the Los Angeles clothing maker and retailer known for its colorful fashions, racy advertising and outspoken chief executive, is fraying at the edges.

Analysts say that though competitors rode out the recession by selling cheaper clothes, the pricey urban-chic clothier offered few discounts or deals. Lenders kept a tight leash on costs, causing the company to struggle to expand. And manufacturing efficiency has slowed ever since American Apparel was forced to dismiss 1,500 workers from its downtown Los Angeles factory in September.

Chief Executive Dov Charney acknowledged the company’s difficult position amid the nation’s stubborn economic downturn, but he is optimistic. Among his intended tactics: bringing talented replacement workers up to speed, making factories more productive and attracting more sales to existing stores. He bristles at suggestions that the brand is straining to stay afloat.

• Read the full Los Angeles Times story.