October 5, 2015 Comments Off on American Apparel Is Bankrupt Views: 621 California News, Los Angeles, National News

American Apparel Is Bankrupt

American Apparel is bankrupt.

The Los Angeles-based fashion retailer filed for Chapter 11 bankruptcy protection, reaching agreements with 95 percent of its lenders to cut down debt and interest owed. This would eliminate about $200 million in bonds that would be replaced by shares of a reorganized American Apparel.

In its most recent quarter, American Apparel reported a 17-percent drop in revenue. Net losses have totaled $384 million in the last 5.5 years. The measure will allow the company to also now close underperforming stores.

Read More at LATimes.com

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