American Apparel Closes 12 of its 13 UK Stores
After receiving approval to liquidate nine of its U.S. retail stores, Los Angeles-based American Apparel is closing 12 of its 13 U.K. stores, putting a total of 150 workers out of a job. The only remaining store is in the Camden section of London.
"Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realize the value for the creditors," Jim Tucker of KPMG, one of two administrators for American Apparel's U.K. business, told The Guardian. "The Camden store will remain open into January."
American Apparel's U.K. business went into administration in early November, shortly before the company declared bankruptcy in the U.S., leading to Gildan Activewear making the leading bid for the company's wholesale products and intellectual property.
While the fate of the company's U.S. retail business is still in question, this doesn't bode well for the future.