American Apparel files for Chapter 11 bankruptcy

[mahatmakanejeeves]

I've never been one of their customers.

American Apparel files for Chapter 11 bankruptcy

Nathan Bomey, USA TODAY 1:17 p.m. EDT October 5, 2015
@NathanBomey

American Apparel filed for Chapter 11 bankruptcy on Monday after its made-in-the-U.S. model faltered, its fashion sense slipped and its controversial former CEO became embroiled in scandal over his behavior in the workplace.

The embattled retailer said it has already reached agreements with creditors representing 95% of its secured debts to execute a restructuring plan. The deal, which would require a court's approval, will allow the company to stay in business, American Apparel said in a statement.

American Apparel (APP), which flirted with bankruptcy as early as 2011, has about 8,500 employees at six factories and 230 stores in the U.S. and 17 countries. The company famously bet its business model on clothing made in the U.S.

The company said in a court filing that it plans to shed unprofitable stores, though it did not identify how many.

[msongs]

1. evidently their target customers, anorexics, aren't buying enough clothes lately nt

[missingthebigdog]

2. LOL!

I love the way their T- shirts feel, but they do tend to be somewhat snug.

[whatthehey]

3. Yes you'd think a company that trumpeted its American nature would understand...Americans' nature

[mahatmakanejeeves]

4. American Apparel hangs on to its made-in-America model — by a thread

American Apparel hangs on to its made-in-America model — by a thread

Shan Li
October 7, 2015, 4:00 AM

Doubts are building about whether American Apparel can stay in the U.S. — and in Los Angeles.

Even after the company filed for Chapter 11 bankruptcy protection Monday, American Apparel Chief Executive Paula Schneider said management had no plans to move manufacturing operations from Los Angeles to foreign soil. The restructuring that lies ahead, she said, will enable American Apparel to keep production in the U.S.

"That's what makes us a really important company and a company that needs to thrive and be saved," she said.

But many analysts said American Apparel may have no choice — and that the company would be foolhardy not to be planning a move soon.