The company, which already has 143 shops, said it will open an additional 150 in the next three years in countries such as Ireland and Spain. The retailer competes with companies such as Swedish operation H&M and Abercrombie & Fitch.

American Apparel's chief executive, Dov Charney, has hit out against Asian sweatshops. People making his clothing in his Los Angeles factories - mostly Spanishspeaking immigrants - are offered higher than average wages, English lessons and massages. The company has annual sales of $275m and earnings of $30m.