Jan 26 - Billionaire investor Ron Burkle cut his stake in troubled hipster brand American Apparel.

American Apparel women's collection

Burkle held 4.3 percent of the company as of Jan. 20, from the 6 percent he held on June 14, according to a filing late Tuesday.

American Apparel, popular with urban hipsters for its "Made-in-USA" clothes, has been under fire on a lot of issues, ranging from possible covenant breaches and charges from its accountant that it withheld important information, to immigration probes of its workers and a long-running sales slump.

Founder and Chief Executive Dov Charney is its largest shareholder.

Shares of the Los Angeles-based company closed at $1.16 on Tuesday on the on the American Stock Exchange. They have lost almost 40 percent of their value since November, when the company said it expects a loss from operations in 2010.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Unnikrishnan Nair)