American Apparel to File for Chapter 11 Bankruptcy Protection
American Apparel, the trendy but troubled Los Angeles clothier, is preparing to file for Chapter 11 bankruptcy protection Monday — yet another blow to a company that has been struggling since ousting its chief executive last year.
The firm said Sunday that it had reached an agreement with 95% of its secured lenders to implement a financial restructuring.
“This reorganization will enable the company to implement a comprehensive transformation strategy to revitalize the business and brand, while keeping its production and operations in the U.S.” American Apparel said in a statement.
American Apparel’s net losses have totaled nearly $384 million over the last 5 1/2 years.