American Apparel Files for Bankruptcy

It’s official now.

By
Fashion
24,879 Hypes 0 Comments

American Apparel‘s legal issues have taken to a downward spiral. After a tedious high-profile battle with Canadian founder and former CEO Dov Charney over a string of accusations, HUH. reports the clothier is facing a record £12.8 million GBP (approximately $19.5 million USD) in losses and an 87% drop in share prices. As a result, the clothing manufacturer has officially filed for U.S. bankruptcy protection.

Situations like this can either be a blessing or a curse. On the upside, the retailer has the opportunity to implement some major company restructuring to collect its close to $300 million USD debt. Current CEO Paula Schneider has announced plans to reduce AA’s debt to $135 million over a six-month plan, that “will enable American Apparel to become a stronger, more vibrant company.” Currently there are no plans to shut down any of its stores.

Read Full Article

Join Our Discussions on Discord

The HYPEBEAST Discord Server is a community where conversations on cultural topics can be taken further.

1055 Users Online

What to Read Next

"Pictures of South East Asia" by Janis Brod | Video
Travel

"Pictures of South East Asia" by Janis Brod | Video

A stunning short film that discovers Laos, Cambodia, Thailand and Vietnam.

adidas Superstar RT "Chalk White"
Footwear

adidas Superstar RT "Chalk White"

Simplicity at its finest.

G-Star 2015 Fall/Winter Outerwear Collection Preview
Fashion

G-Star 2015 Fall/Winter Outerwear Collection Preview

Military-inspired, yet tailored for the modern man.


Air Jordan 1 Retro High OG "Powder Blue"
Footwear

Air Jordan 1 Retro High OG "Powder Blue"

Jordan Brand goes to the University of North Carolina for inspiration.

Balmain Creative Director Olivier Rousteing Will "Fight for Diversity"
Fashion

Balmain Creative Director Olivier Rousteing Will "Fight for Diversity"

“People think modernity is about clothes, but I think the real modernity is diversity.”

Ducati 'Diavel Carbon'
Automotive

Ducati 'Diavel Carbon'

Bypassing the traditional red paint, this new version is sleeker than ever.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.