American Apparel Inc has filed for Chapter 11 Bankruptcy. The Los Angeles based retailer has been plagued with financial problems, and has reportedly not made a profit since 2009. Even worse, former CEO and founder Dov Charney has been facing accusations of misused corporate funds, and allegations that he, on multiple occasions, breached the company’s sexual harassment policy.
The bankruptcy filing came after American Apparel had reached a deal with 95% of their secured lenders. The Chapter 11 restructuring agreement, which will take American Apparel private and hand almost complete control to its largest bondholders, was designed in an attempt to cut the company’s crippling debts and interest payments.
American Apparel has seen its top
The bankruptcy filing came after American Apparel had reached a deal with 95% of their secured lenders. The Chapter 11 restructuring agreement, which will take American Apparel private and hand almost complete control to its largest bondholders, was designed in an attempt to cut the company’s crippling debts and interest payments.
American Apparel has seen its top