American Apparel, the brand known for the iconic indie disco pants, tennis mini and white lined hoodie are filing for bankruptcy, again. According to Bloomberg, the brand may be filing in the next couple of weeks, though American Apparel has declined to comment.
The last couple of months have been a very rocky for American Apparel. Dov Charney the founder of the brand and the one behind the notorious controversial ads was fired, then a restraining order was taken out against him. Shortly after that Paula Schneider was appointed as the new CEO, who attempted to remove all the overly sexual ads, but then resigned after eighteen months with the company.
In August 2015, it became public knowledge that American Apparel was in $210.6 million debt and has reportedly not made any profit since 2009. In October 2015, the company then filed for bankruptcy for the first time. All hope was not lost just yet, as Dov Charney claimed he was going to make a comeback and was trying to regain control by buying the company back. This news fell on death ears as the public is still waiting on this comeback.
The company has now been taken over by hedge fund sponsor, Monarch Alternative Capital. The brand has spent the last couple of months trying to improve sales by going back to the basics, but with the new sponsor this may have all been all for nothing.
When a company goes bankrupt it still can exist, so don’t rush out to American Apparel and stock up on years worth of hoodies. They are still around and have 435 stores worldwide. We can all hope that the company find their feet so we can all continue to enjoy its staples, especially that mini.
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