American Apparel's UK Business Goes Into Administration
Despite rumors, American Apparel has not yet declared bankruptcy again in the U.S. However, the company's U.K. division has gone into administration, which means a court-appointed administrator is taking over the company in the U.K.
"The 13 U.K. [American Apparel] stores are well stocked and will continue to trade as usual in the lead-up to the peak Christmas trading period," Jim Tucker of KPMG, one of the administrators for American Apparel, told The Guardian. "While the U.K. business is not part of the U.S. sale, a number of the U.K. stores are in prime high street locations, and we will also aim to sell individual stores following the Christmas trading peak."
Tucker is referring to the potential sale of American Apparel in the U.S., following former CEO Paula Schneider's decision to step down. Since then, it's come out that the company is looking into the possibility of a sale.
As speculation of American Apparel's possible bankruptcy in the U.S. still swirls, we'll follow this story as it develops.