Right Said Fred made a whole song about being "too sexy" in 2006 - but can being too revealing cause a company to go bankrupt? American Apparel announced Monday that it is closing stores and laying off employees in 2015 to cut costs amid its recent advertising controversy. Many have accused the retailer of using sex to sell their products.

American Apparel's Dov Charney's sexual harassment of employees was the worst: https://t.co/ACExbQxjf4 pic.twitter.com/wQDAcbL0n5

— NYLON (@NylonMag) June 27, 2015

"We are committed to turning this company around," Paula Schneider, recently appointed CEO of American Apparel, said in a statement, adding that she intended to "preserve jobs for the overwhelming majority of our 10,000 employees and return the business to long-term profitability."

Schneider told CNNMoney in a recent interview that the company is undergoing an image change and rebranding to tone down the sexuality in the advertising that made it famous - or should we say infamous?

Founder Dov Charney was fired last year from the company amid allegations of mismanagement and sexual harassment. Charney and his "associates" have been hit with about 20 lawsuits and "administrative actions," according to American Apparel.

Previous ads were over-flowing with cleavage, exposed nipples, spread legs, and harsh flash that looked like the photos were taken by a amateur porn filmmaker. To say they were explicit would be an understatement.

The Los Angeles-based retailer did not say how many of its 239 American Apparel stores would be closing in 2015 or how many its 10,000 workers would be fired.

According to USA Today, American Apparel reported a net earnings loss of $26.4 million in the first quarter and a 5% decline in same-store sales. The company had $340 million in net losses over the last five years.