American clothing, the most famous advertising campaign, chapter 11 bankruptcy filing.
American Apparel is a trendy clothing company, perhaps best known for its sexy advertising and filed for bankruptcy on Monday.
American-made clothing chains have announced a deal with 95 per cent of secured lenders to implement what it calls a “comprehensive transformation strategy to reinvigorate business and brands”. The company says it will continue to manufacture and operate in the United States.
The company said the restructuring agreement approved by the board would significantly reduce American Apparel’s debt and interest payments by eliminating more than $200 million in bonds in return for a restructuring of the company.
“This reorganization will make American clothing company to become a stronger, more dynamic company, through improving our financial foundation, we will be able to focus on our efforts to carry out our business transformation strategy, because we want to create new products, new design and promotion, to invest in new store, our e-commerce business development, and create attractive new marketing campaign, this will help to push forward our business. ”
The los angeles-based company has struggled since its founder and chief executive resigned last year. And NPR’s noguchi noguchi tells our news broadcasting department:
“American apparel company with its basic cotton t-shirts and named vest and avant-garde sexy advertising, but this home based in Los Angeles, the company has a large number of real estate business, sales have been falling. Last year, the company, the company is also a chaotic struggle, to overthrow the founder and chief executive, doni, Mr (Dov Charney), the company is trying to restructuring with the support of creditors, the creditors will new cash. The company said the application would not affect its retail business, but it did not say whether it would eventually close the store. “
As last year’s bi-directional report, the U.S. apparel company’s board voted to replace charney after he filed a lawsuit against him. As we reported at the time, the company did not provide details of the complaint, but Charney has been the subject of allegations of sexual misconduct.
The USA today reported that Charney had sued an American apparel company since he resigned as chief executive. The journal also reported that the company was underperforming in the face of other competition for young consumers.
“American apparel, which went bankrupt as early as 2011, has about 8,500 employees in six factories and 230 stores in the United States and 17 countries. The company’s famous business model is american-made clothing.
“The company said in a court filing that it planned to get rid of unprofitable stores, although it was not sure how much.
“American apparel is declining in competition with agile retailers such as H&M and Forever 21, which have used cheaper, more fashionable products to attract millennial consumers.”