MEMORANDUM To: Board of Directors of American Apparel, Inc. From: Michael Bigger, CEO of Bigger Capital, LLC, Cold Spring Harbor, NY 11724 Attn: Glenn A. Weinman, Executive Vice President, General Counsel and Secretary 747 Warehouse Street, Los Angeles, CA 90021 Distr: Dov Charney, Alberto Chehebar, David Danziger, Robert Greene, Marvin Igelman, Allan Mayer, and William Mauer As a significant holder of American Apparel shares, I want to take this opportunity to remind the Board of American Apparel of its fiduciary duty towards all the shareholders of American Apparel. Given the recent setbacks experienced by the company as evidenced by the October 10 press release, Bigger Capital strongly opposes any action by the Board to extend the maturity of the Charney Anti-Dilution Provision as it did in 2013. The current stock price represents an opportunity for Mr. Charney to make open market purchases with his own money in order to negate the dilution created by the funds that were raised in 2011, should he so desire. Kind Regards, Michael Bigger CEO, Bigger Capital, LLC