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American Apparel to file for bankruptcy as soon as Monday: sources
[NEW YORK] American Apparel LLC plans to file its second bankruptcy in just over a year as soon as Monday, weighed down by intense competitive pressures facing US teen retailers and a rocky relationship with its founder, according to people familiar with the matter.
A second bankruptcy would come as the retailer struggles to overcome years of losses and rising online competition. The company became a part of popular culture for its racy advertising and mercurial founder, Dov Charney.
American Apparel has been trying to find a buyer for the company, and began discussing a possible sale with brand licensor Sequential Brands Group Inc and financial services company B Riley Financial Inc after talks with brand licensor Authentic Brands Group LLC stalled.
It could not be immediately determined if American Apparel has found a buyer. If it files for bankruptcy without a buyer in hand, it will look for one through a court-supervised process, a source has previously said.
American Apparel declined to comment. The sources, who cautioned that the bankruptcy plans may change or be delayed, asked not to be identified because the information was confidential.