American Apparel Sold in Auction after Declaring Bankruptcy Twice in One Year

The once-iconic brand, emblematic of LA youth culture and “Made in America” pride, is closing its doors for good. Once the bread and butter of hipster styles and simple, counterculture fashion, American Apparel has been bought by Gildan: a Canadian active-wear company.The deal cost Gildan 88 million dollars.

At its prime, American Apparel generated $633 million in sales and had over 200 stores in 20 different countries. The company’s refusal to outsource American manufacturing jobs to cheaper labor and a steadfast sweatshop-free ethos created a loyal following throughout its time in operation. Created in former founder Dov Charney’s college dorm room in 1989, the company quickly grew to be a household name in retail through its trendy, American-made manufacturing and sexually provocative marketing campaigns. Despite its success, the company faced internal problems for the past few years, not limited to sexual harassment lawsuits aimed at Charney, employee anger at questionable labor practices, drops in sales, and huge debts coupled with costly legal battles. Charney was eventually ousted from his own company and American Apparel subsequently declared bankruptcy twice in one year.

Also attributable to the company’s demise were changing consumer tastes, the decline of brick-and-mortar success brought by the rise in online retail, and competitive pricing by similar brands such as Zara and H&M. Gildan purchased American Apparel’s intellectual property and manufacturing equipment for $88 million, as well as its purchase orders and inventory for $15 million. However, American Apparel’s stores were not included in the Gildan deal and the closure of its retail stores and manufacturing plants will lay off roughly 2,400 employees.

The end of a successful business is painful for owners, employees, and consumers alike. At the Bradford Law Offices, PLLC, our knowledgeable business bankruptcy lawyers represent struggling businesses that have looked to bankruptcy for financial relief. If you are experiencing financial turmoil in your company, contact our Raleigh offices at (919) 758-8879 for support and guidance in your case.

Understanding “automatic stay” in Chapter 11 Bankruptcy

Many individuals will find themselves in the frustrating situation when they can no longer manage the debts in their business. For those who are seeking freedom from overwhelming debts, filing Chapter 11 bankruptcy is worth considering, as they can be protected by “automatic stay.”

During an automatic stay, debtors are provided with a certain immunity by the court from their creditors, including unfavorable actions that could be done against them. For a period of time, debtors under automatic stay can have the peace of mind that their property will not be foreclosed or repossessed. Creditors are also prevented from insisting debtors make payments that they could not afford. Debtors who have filed for bankruptcy, however, should note that creditors could go after their property and liquidate it if it has nothing to do with the filing.

If you have considered filing for Chapter 11 Bankruptcy, enlisting a skilled attorney is important, especially if you want to make sure that you get the best judgment you deserve. Find out how an attorney of Bradford Law Offices, PLLC in Fayetteville may work for you today by calling (919) 758-8879.

DMX to consider bankruptcy an option to save home

To possibly save his home and settle overwhelming debts to creditors, hip hop artist Earl Simmons a.k.a. “DMX” has once again filed for bankruptcy, a December 29 report of Mail Online stated.

Court papers revealed the 46-year-old Simmons had filed for Chapter 13 Bankruptcy in a move to save his house in Mount Kisco, New York. The rapper, who claims that he is financially struggling, had $2,030,970 worth of debt to various creditors. DMX identified family support as his major creditor, followed by Compass Bank and other support payments that he had failed to settle. Bankruptcy is not new for the Bronx rapper as he had also filed two other bankruptcies since the year 2009. Many speculate that DMX’s struggle with his finances comes after fathering 15 children to multiple women.

In the situation that you are dealing with overwhelming debt, working with a skilled lawyer is critical if you are considering to file for bankruptcy. Discuss your situation with a Bradford Law Offices, PLLC lawyer in Fayetteville today by calling (919) 758-8879 to learn more about your options.

Average US household has more than $16K in credit card debt

A recent report revealed a typical family in the U.S. has more than $16,000 in credit card debt, and it seems their income is not enough to cover these debts, a December 13 article of CNBC reported.

After analyzing information from the Census Bureau and the Federal Reserve Bank of New York, financial think tank NerdWallet revealed households currently have balances on their credit cards amounting to $16,061. The report also found that an average family can pay only a small fraction of their debt. A typical family’s debt could increase to $132,529 when other household debts are added, such as mortgages. Though the overall household debt tends to increase, student loan debts stagnated since last year.

Unfortunately, there are some families who can no longer manage their overwhelming debts. However, if this happens to you, an attorney can offer you workable solutions to give you a fresh start. Consult with an attorney at the Bradford Law Offices, PLLC in Fayetteville today by calling (919) 758-8879 to learn more about your options.

New Southern Season owner will continue brand’s legacy

A December 1 article of Triangle Business Journal said the company that recently acquired the Southern Season store in Chapel Hill, North Carolina will continue to use the brand known and appreciated by patrons.

Calvert Retail CEO Eric Brinsfield confirmed they will continue operating Southern Season and will add products to further improve the business its patrons know and love. Brinsfield reportedly traveled to North Carolina several times so he could become acquainted with the business. Calvert Retail acquired Southern Season for $3.5 million in August after it sought bankruptcy protection in June. Patrons of the gourmet retailer in Chapel Hill should expect to be delighted by additional products offered by the company. Bankruptcy documents revealed that Southern Season had over $18 million worth of liabilities.

In Fayetteville, the attorneys at the Bradford Law Offices, PLLC understand that many businesses struggle from hefty debts. However, if you have fallen into serious financial troubles, we can work on your behalf if you decide to file for bankruptcy protection. Call us today at (919) 758-8879 to find out how we could help you with your situation.

Millions of people failing to pay car loans on time

Recent data from the New York Federal Reserve revealed approximately six million people in the U.S. were failing to settle their car loans on time. Many of the same people have poor credit scores, an article of CNN reported on December 1.

According to reports, the New York Fed’s Center for Microeconomic Data found that many subprime car loan borrowers are 90 days behind on their loans, calling it a “significant concern.” Delinquent borrowers have increased dramatically because many people were given a chance at car loans even though lenders knew for a fact it would be difficult for them to make payments.

The bankruptcy attorneys of the Bradford Law Offices, PLLC understand that many people in Fayetteville struggle to pay their car loans due to financial problems. If you are struggling with your debt, we may be able to offer you legal advice to help you address your situation. Call us today at (919) 758-8879 to find out how we may represent you.

Internet telephony company Avaya considering bankruptcy

A Chapter 11 Bankruptcy is being considered as an option by multinational firm Avaya Inc., to possibly lessen their financial problems, an article in The Wall Street Journal reported on November 23.

Information coming from the people who have known about the issue revealed that Avaya may file for bankruptcy this coming December after securing a deal with a potential investor. Reports said Avaya’s long-term debt as of June is $6 billion and the bankruptcy filing will be considered to lessen it. The company reportedly had accumulated debts after experiencing losses for years. Part of the bankruptcy, Avaya would allow some other creditors to own shares for settlement. The sources also noted that a company is being anticipated to acquire Avaya in a bidding for $4 billion.

The Fayetteville attorneys of the Bradford Law Offices, PLLC work for business owners who have decided to file for bankruptcy to address their financial problems. If you are in such difficulty, we may offer you all the legal support you need to make sure you get the best deal in the process. Call our office today at (919) 758-8879 to learn more about your options.

American Apparel’s assets to be acquired after bankruptcy filing

A Canadian clothing company expressed interest in acquiring some assets from American Apparel after it filed for bankruptcy a second time, an article of Winston-Salem Journal reported on November 14.

According to reports, Gildan Activewear Inc. said they will acquire $66 million worth of American Apparel’s assets. The Los Angeles-based company reportedly intended to sell their assets to Gildan in the second bankruptcy filing as the federal court is expected to auction American Apparel’s assets. Court filings revealed that only American Apparel’s intellectual property rights and its 1.5 million square foot facility will be acquired by Gildan. The possible acquisition would not include the 110 outlets of American Apparel, Gildan said. The second Chapter 11 bankruptcy filing of American Apparel came several months after they exited from a previous filing.

The Fayetteville attorneys of the Bradford Law Offices, PLLC work for business owners who decide to file for bankruptcy. If you are in such a situation, we may be able to tirelessly work on your behalf to make sure you get the deal you deserve. Learn more about your legal options today by calling (919) 758-8879.

Housing industry improves based on overall foreclosure data

CoreLogic, a real estate information firm, recently released data revealing the housing industry is improving despite an uptick in completed foreclosures, according to a November 8th report of Housing Wire.

The latest recorded nationwide completed foreclosure data in September revealed an increase in monthly completions even though the number decreased annually. The current trend of increasing completed foreclosures can still be seen in a positive way because foreclosure inventories have been decreasing, according to CoreLogic’s CEO and President Anand Nallathambi. He argues that the overall housing industry will continue to improve next year. CoreLogic also noted the number of homeowners in serious delinquency because of their mortgages decreased significantly relative to data recorded in 2015.

While the overall housing industry continues to improve, the legal team at the Bradford Law Offices, PLLC understands that many Fayetteville residents are still being threatened with foreclosure every day. If you are in such situation, we can tirelessly work on your behalf to protect your home. Call us today at (919) 758-8879 to learn more about your legal options.

Filing for bankruptcy as a couple

Married couples generally combine financial accounts, and are therefore each affected by the other’s financial decisions. During financially trying times, it is possible for these couples to file for bankruptcy separately, but it can also be worth considering filing together. 

Filing for joint bankruptcy in Raleigh can be efficient as couples only need to fill out one application form. Couples who have decided to file for joint bankruptcy are both protected by law from persistent creditors who can aggressively attempt to collect owed payments through harassment. Joint bankruptcy is also relatively cheaper than two separate bankruptcy filings. Nonetheless, it is important to remember that joint bankruptcy will affect both both credit scores. 

If you want to know more information on filing for joint bankruptcy, contact the lawyers at the Bradford Law Offices, PLLC in Raleigh. Call our office today at (919) 758-8879 to find out how we may represent you.

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