While the saga inside the boardroom and the firing of founder and CEO Dov Charney made headlines last year, sales remain a drag for American Apparel.

Price point is a problem, according to Dion.

"They are going to struggle," he said. "Most Americans, the whole 'shop American' thing really doesn't resonate with them unless the price is the same or less."

The New York Post reported at the end of 2014 that the company had been delaying some payments to some suppliers.

Experts said the retailer is ripe for a possible buyout, and sources told CNNMoney in December the company has sought advice from an investment bank on a range of "strategic options."