American Apparel Files for Bankruptcy Protection After Losses

[marmar]

(Bloomberg) American Apparel Inc., the made-in-the-U.S.A. clothing chain known for provocative marketing and boardroom drama, filed for bankruptcy protection after years of losses and a feud with controversial founder Dov Charney.

As part of a prearranged Chapter 11 restructuring, the Los Angeles-based company will reorganize its debts, which have ballooned to levels exceeding its assets. More than $200 million of bonds will be exchanged for stock in the reorganized company, according to a statement on Monday. American Apparel will remain in business during the process.

Filing for bankruptcy is a “difficult decision that gives American Apparel the opportunity to rebuild the business,” said Bryan Roberts, an analyst with Kantar Retail. “Quite a few U.S. retailers have gone down this route and come out the other side.” ...........(more)

http://www.bloomberg.com/news/articles/2015-10-05/american-apparel-files-for-bankruptcy-protection-after-losses