Is it game over for American Apparel?!
On Monday, fashion giant American Apparel filed for Chapter 11 bankruptcy. So what does that mean for the company’s future? We’re not so sure.
The company, who built a brand based on American-made clothes, says it plans to shed unprofitable stores though they did not say how many. The clothing company has lost its appeal to Millennials who prefer cheaper, more fashionable options like Forever 21.
According to its bankruptcy filing, the 26-year-old company lost about $300 million from 2009 through 2014. The company plans on restructuring & rebranding everything. New CEO, Paula Schneider, has already chartered a plan to rehab the company’s image through a mix of new marketing, products and store design.
American Apparel files for Chapter 11 bankruptcy
The bankruptcy comes more than a year after the company ousted its controversial CEO, Dov Charney, over allegations of misconduct. American Apparel filed for Chapter 11 bankruptcy on Monday following a rocky period in which its made-in-the-U.S. model faltered and its controversial CEO became embroiled in controversy over his behavior in the workplace.
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