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American Apparel to file for bankruptcy as soon as Monday: sources

Monday, November 14, 2016 - 14:19

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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.

[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.

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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.

REUTERS

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