Just last month, CEO Paula Schneider stepped down from her position at the company and now things are going from bad to worse for American Apparel. According to The Business of Fashion, those familiar with the situation are saying that the U.S. retailer is on the verge of filing for bankruptcy yet again.
The potential filing would be just the latest in a string of volatile events throughout the past couple of tumultuous years for American Apparel, including its split from controversial founder Dov Charney in 2014 and last year’s initial bankruptcy filing. In January, American Apparel reorganized under the helm of senior lenders, but that move ultimately did little to stave off the company’s continued slide, which saw it removed from the New York Stock Exchange after shares plummeted to just $0.16 USD. Louis Terline and Jeff Madalena, who sold OAK to AA back in 2013, even purchased their imprint back from American Apparel for just $600,000 USD.
A second bankruptcy filing could ultimately pave the way for a potential sale as both licensors Authentic Brands Group LLC and Iconix Brand Group Inc. reportedly have interest in an acquisition.