American Apparel has filed for bankruptcy


Struggling clothing company American Apparel (APP) filed for Chapter 11 bankruptcy protection on Monday.

The publicly traded company listed numerous creditors in its filing, with investment firm Standard General L.P. having the largest unsecured claim at $15 million.

The move is far from a surprise: American Apparel said in August it had "substantial doubt" that it would stay in business.

The clothing maker had been in the middle of a turnaround effort that included store closings and some layoffs. The company also faced several lawsuits from ousted CEO Dov Charney.

Charney was fired last year from the company he founded amid allegations of mismanagement and sexual harassment. Charney and his associates have retaliated with about 20 lawsuits and "administrative actions," according to the firm.

Charney founded American Apparel in 1998, building an operation that was famous for its sex-infused advertising campaigns and unorthodox business practices.

On Wall Street, the company's stock has dropped to penny stock status as losses increase. The attorney representing American Apparel, Laura Davis Jones, could not be reached for comment.




Ask us about our FREE financial advice program: ChatButton


Other Top Stories:

Will Twitter's Share Crash?

Technical Analysis Lesson 1 - Introduction

How I Made Over $30,000 a Year by Investing in Binary Options


Follow us and SHARE this story on Facebook:   



Please publish modules in offcanvas position.