American Apparel expecting to seek bankruptcy protection
Posted on Monday, October 31st, 2016 at 4:21 pm
Los Angeles-based clothing company American Apparel Inc. might file for bankruptcy a second time. The revelation comes just months after the company exited an earlier bankruptcy filing last year, a report of Bloomberg stated on October 27.
Bankruptcy is under consideration again by American Apparel so they can potentially cut down portions of their retail operations by exiting leases. The company completed bankruptcy procedures last February after they filed in October last year. American Apparel’s first filing was made after its founder and longtime CEO Dov Charney was accused of misconduct that got him fired. Sources, who requested anonymity, stated that the new management failed to reinstate the brand based on their plan.
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