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.

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.

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.

American Apparel expecting to seek bankruptcy protection

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.

If you decide to seek bankruptcy protection, working with a skilled legal team is critical, especially if you need the best deal to get your financial footing back. Call the legal team at the Bradford Law Offices, PLLC in Fayetteville today at (919) 758-8879 to learn more about your options.

Struggling Aéropostale expected to complete Chapter 11 Bankruptcy

American teen clothing company Aéropostale is expected to exit from Chapter 11 Bankruptcy, giving them a possibility to improve their business, an article of Fortune reported on September 13.

Reports said Aéropostale will continue to operate with 229 outlets after a federal judge gave them a go signal to maintain 7,000 employees and continue operations. The struggling clothing company filed for bankruptcy in May. Landlords Simon Property Group and General Growth Properties made a $243 million bid to save most of the stores from being liquidated. Though Aéropostale was given a relief in the process with much smaller operations, they will need to adjust to their direct competitors who have established their names in the clothing industry.

Chapter 11 Bankruptcy, fortunately, is a viable option for entrepreneurs who want to improve their financial footing. If you are in such situation, we may be able to offer you legal options so you can recover from your burden. Find out how the attorneys at the Bradford Law Offices, PLLC may advocate on your behalf today by calling (919) 758-8879.

Logan’s Roadhouse plans to reorganize through bankruptcy

Popular steakhouse chain “Logan’s Roadhouse” announced on August 8 that they filed for Chapter 11 Bankruptcy in Delaware so they could improve their profitability by reorganizing the business, Knoxville News Sentinel reported.

Reports said at least 18 Logan’s restaurants with poor performance are going to be shut down. Although Logan’s has 256 locations in several states, including North Carolina, they saturate the Nashville area. The bankruptcy filing did not identify which stores are affected. Logan’s said that employees in the stores shutting down will either be reassigned to other branches or receive assistance finding other jobs. Court documents revealed that Logan’s listed $12. 9 million worth of assets while their liabilities amounted to $525.4 million. They have worked with their creditors since June to attempt to settle their debts.

Filing for business bankruptcy is a great opportunity for struggling businesses to improve their finances and reinvent themselves. If you decide to restructure through bankruptcy in Fayetteville, get in touch with the Bradford Law Offices, PLLC. Find out how we may work for you today by calling (919) 758-8879.

NFL’s Terrell Owens threatened with foreclosure

According to an August 6 article of Realty Today, retired professional football player Terrell Owens is at risk of foreclosure if he fails to sell his property, which has a defaulted mortgage of more than $900,000.

Reports said Owens, 42, already placed his $2.2 million property in San Fernando Valley on the market with a slightly higher price than he originally acquired it. However, reports revealed that as of writing no one has shown interest in buying his home. The bank reportedly decided to pursue foreclosure proceedings after Owens failed to settle $905,417.06 worth of mortgage debt within the 90-day extension period given to him. Owens, according to other reports, admitted that after his football career he has no other source of income. The upcoming “hall of famer” who earned approximately $70 million in his career is also selling his 4,250 square foot property in Sherman Oaks.

If you are threatened with foreclosure, seeking an attorney’s advice is critical, especially if you are unaware of the process. Speak with a Fayetteville attorney at the Bradford Law Offices, PLLC today by calling (919) 758-8879 to find out how we can help protect your home from foreclosure.

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