Stock of the day - American Apparel Inc (NYSE: APP)

Bloomberg Business Week reported today that the clothing retailer may file for Chapter 11 bankruptcy protection citing a regulatory filing that American Apparel “may not have sufficient liquidity to sustain operations and to continue as a going concern."

The company appeared on the radar of short sellers in late February. Since then, short interest has more than trebled to 6.6% of the total shares outstanding on loan. This represents 90% of the supply of stock that can be shorted, meaning it would be very hard to short more of this stock.