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American Apparel

American Apparel Files for Bankruptcy

American Apparel filed for bankruptcy protection, plagued by falling sales, crippling debts, employee protests, and a drawn-out battle with the company’s ousted founder Dov Charney.

We’ve long admired American Apparel for their commitment to domestic manufacturing and cool, simple clothing. But at the same time we’ve struggled with horrific reports of Dov Charney’s behavior and their exploitative advertising campaigns.

It’s been a tough year for mall-driven fashion retail. Stores like Abercrombie and Aeropostale have struggled to compete with the rise of fast-fashion anchor stores like H&M and Forever 21. Within the past year Wet Seal, Deb Shops, Delia’s, and Body Central have all gone under.

American Apparel’s restructuring will be handled in part by Standard General, the same hedge fund that is leading the turnaround at RadioShack following their recent bankruptcy filing in February.

American Apparel has expressed a commitment to keeping manufacturing in America. This is a smart move – domestic manufacturing and cutting-edge designs have always been the brand’s strengths.