American Apparel Reportedly Ready to File for Bankruptcy Again
Last week, we reported that American Apparel was generating interest from apparel licensors, and that a potential bankruptcy in the future could be a catalyst toward that sale. It seems that the ball is rolling, as Bloomberg reported that the Los Angeles-based apparel company is planning its second bankruptcy filing in two years.
Sources close to American Apparel told Bloomberg that the bankruptcy filing could come within the next few weeks.
This is relatively soon after the company found itself in the black again in February when former bondholders took control. The sources, who remained anonymous, told Bloomberg that the company's attempted return to basic apparel, like T-shirts, and move away from more risqué advertising did not result in as big of a turnaround as expected. So the company reportedly has hired Berkeley Research Group for restructuring guidance.
We'll keep an eye on this story as it develops. If American Apparel does file for bankruptcy, it will be interesting to look into the growing possibility of a sale.