American Apparel Files for Bankruptcy Again
And sold for $66 million USD, sources say.
According to sources, American Apparel LLC has filed for its second bankruptcy following years of losses and a difficult relationship with its founder, Dov Charney, who was fired in 2014 for allegations of misconduct. The American retailer, famous for its racy advertisements and colorful basics, was able to overcome a $200 million USD debt that emerged from a previous 2015 bankruptcy filing, but the teen retailer has struggled to keep afloat due to competition from e-commerce companies. As spending habits of American teens shift from mall visits to online shopping websites, several U.S. teen retailers such as Quiksilver Inc., Aeropostale Inc., Wet Seal LLC, among others, have fallen into bankruptcy, too. American Apparel agreed to sell the brand to Gildan Activewear Inc. for approximately $66 million USD, Gildan said in a statement. American Apparel has yet to release an official statement.
