American Apparel files for bankruptcy protection
The brand is trying to reorganise its debt
American clothing retailer American Apparel has officially filed for bankruptcy protection after its stock value dropped by 87 percent last year. Not only is the company struggling to reorganise its debt, the company is also forced to deal with several lawsuits after its CEO Dov Charney was fired last year for misconduct.
But all is not lost according to Dazed, as the company is set to restructure – cutting down its debt from $300 million (approx. RM1.3 billion) to $135 million(approx. RM588 million) over the course of six months.
"Our debt load simply wasn't sustainable. You can't do a turnaround plan without cash," said Paula Schneider, Chief Executive. "Every day, we would make choices on what we were going to buy, even though we needed more for everyone."
"We will continue to manufacture in America," Paula added. "That's what the brand is. That's what it's about."