Bankruptcy filing underway for American Apparel
Posted on Monday, October 31st, 2016 at 4:04 pm
Los Angeles clothing retailer American Apparel Inc. may be seeking bankruptcy protection in the near future so they can undergo another reorganization, an October 27 article of Bloomberg reported.
The possibility of another bankruptcy filing was revealed by sources who were familiar with the issues within the company. American Apparel also filed for bankruptcy last year and exited it after last February. The first bankruptcy filing was made after the company suffered financial problems due to economic hardships and managerial problems. Reports also said that the company might consider bankruptcy for the second time so they can stop some of their retail operations and eliminate their leases. Though it is likely to happen, the company has not yet finalized their plan due to the upcoming holiday season.
The Raleigh lawyers at the Bradford Law Offices, PLLC represent struggling businesses who have decided to seek relief through a bankruptcy filing. If you are in such a situation, we may offer you legal assistance throughout the entire process. Get in touch with us today by calling (919) 758-8879 to learn more about your options.