Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

American Apparel files for bankruptcy protection

American Apparel has filed for bankruptcy protection in the US, less than two months after the business warned it could cease trading within a year.

The US retailer, which has 19 stores in the UK and one in Dublin, has reached a restructuring deal with 95% of its secured lenders to reduce its debts.

It made a net loss of $19.4m (£12.4m) in the three months to June 30, up from $16.2m (£10.3m) in the same period last year.

Lenders will write off more than $200m (£131m) of bonds in exchange for equity in the company, reducing its $300m (£197m) debt to no more than $135m (£89m) and cutting annual interest payments by $20m (£13m).

The retailer stressed its retail, wholesale and manufacturing operations will continue without interruption and its international operations are not affected by the reorganisation in the US.

American Apparel chief executive Paula Schneider said: “By improving our financial footing, we will be able to refocus our business efforts on the execution of our turnaround strategy as we look to create new and relevant products, launch new design and merchandising initiatives, invest in new stores, grow our e-commerce business, and create captivating new marketing campaigns that will help drive our business forward.”

 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.