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.
Due to stiff marketing competition and “macroeconomic challenges,” Vertellus Specialties Inc., a novelty chemical company, recently filed for Chapter 11 Bankruptcy, an article of Indianapolis Business Journal reported on June 6.
The Indianapolis-based company, which has five facilities in other states, is well-known for their chemicals that are used in other industries and consumer products. In its bankruptcy documents filed recently, Vertellus has listed its liabilities between $500 million and $1 billion, while their assets range from $100 million to $500 million. Private equity company Wind Point Partners will likely sell Vertellus to a Delaware-based corporation, Valencia Bidco LLC, as part of the deal. Interested parties are given a deadline of August 15 to submit their bids.
At the Bradford Law Offices, PLLC in Fayetteville, our team represents business owners who have decided to file for Chapter 11 bankruptcy. We may be able to work on your behalf to help you receive the best deal possible in your filing. Call our office at (919) 758-8879 to learn more about your legal options.
Core Media Group, the company behind television hits “American Idol” and “So You Think You Can Dance,” recently sought bankruptcy protection due to overwhelming liabilities and decreased revenue. Court documents revealed the company’s profits declined after the TV show “American Idol” approached its final season due to plummeting ratings.
When “American Idol” began, it would regularly draw 30 million viewers per episode, but it only drew 13.3 million viewers during its final show. Core, based in West Hollywood, reportedly listed $512 million in liabilities and only $73 million in assets. The company claimed their revenue started to significantly decrease around 2015.
Filing for bankruptcy is a viable option for businesses that are faced with financial issues due to a decline in the economy, and working with a qualified lawyer could help you recover from serious financial troubles. If you are considering filing for bankruptcy, call (919) 758-8879 to speak with a lawyer at the Bradford Law Offices, PLLC to learn more about your options.
A healthcare company based in Magee, Mississippi has decided to file for Chapter 11 Bankruptcy, an article of Becker’s Hospital CFO reported on April 2.
Reports stated that Pioneer Health Services, which owns hospitals in several states including North Carolina, decided to file for bankruptcy due to financial issues such as the increase in use of “high deductible health plans,” failure of insurance companies to settle payments on time, and other factors related to investment. Danbury-based Pioneer Hospital of Stokes assistant CEO, Pam Tillman, stated that the Chapter 11 process will allow them to pay their creditors in a timely manner and retain their existing vendors. Hospital employees will continue to get their pay during the bankruptcy transition, Tillman claimed. The process may last up to two years and Tillman is hoping to get positive results. Pioneer Health Services also has hospital facilities in Mississippi, Virginia, Tennessee, and Georgia.
The lawyers of the Bradford Law Offices, PLLC in Fayetteville believe that financially-struggling companies deserve a second chance to find their financial footing. If you have decided to file for bankruptcy, we may offer you legal assistance to ensure a smooth process in an unstable time. Learn more about your options today by calling (919) 758-8879.