American Apparel Files for Bankruptcy Again
According to Bloomberg.com , American Apparel LLC has filed for bankruptcy again, bringing the total number of bankruptcies to two. The bankruptcy emerges following consecutive years of losses and an increasingly difficult relationship with American Apparel’s founder Dov Charney who was fired in 2014 for misconduct issues. When AA originally filed for bankruptcy, they bounced back overcoming $200 Million in debt but continues to struggle as American teens shift to shopping online and at fast-fashion retailers like H&M and Forever 21.
Bloomberg suggests that American Apparel has agreed to sell the brand to Gildan Activewear inc for $66 million USD. We’ll keep you posted as this story progresses.