In news that isn't all that unexpected, American Apparel has filed for US bankruptcy protection.
The troubled brand, which has been fighting to make a turnaround since its stock value fell by 87 per cent last year, has continued to struggle with its mounting debt – making a recorded loss of $19.4m (£12.8m) in the second quarter. They’ve also been locked in a grim, drawn-out legal battle with founder Dov Charney over misconduct claims.
It's not the end though. In a new programme created to help cut down their losses, the brand will restructure – ideally cutting down its debt from $300m to $135m over the course of six months. And, at this stage, there are no plans to shut down any of its retail stores, or wholesale and US manufacturing operations.
According to chief executive Paula Schneider, their planned restructure “will enable American Apparel to become a stronger, more vibrant company.”
The LA label, known mostly for its controversial campaigns and fraught legal history, has not turned a profit since 2009.
