Headlines

American Apparel Files for Bankruptcy

Strikes deal with lenders

Published

9 years ago

October 5, 2015

American Apparel (Los Angeles) filed for Chapter 11 bankruptcy Monday, Oct. 5. The filing comes after announcements of the company’s growing debt, declining sales and legal battles over the past year.

The New York Times reports the company's board approved the move after reaching a deal with secured lenders. The deal included a debt-for-equity conversion, which allows bondholders to exchange debt for shares in the company.

The deal also allows extra financing and will keep American Apparel from shuttering its 130 U.S. stores and Los Angeles-based manufacturing operations. No layoffs have been reported.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design