American Apparel seeks bankruptcy protection again
Posted on Tuesday, November 22nd, 2016 at 9:07 pm
Los Angeles-based clothing line American Apparel filed for Chapter 11 Bankruptcy on November 14, several months after they completed a previous bankruptcy filing, an article of USA Today reported.
According to reports, the second bankruptcy filing was considered after the company’s recovery plan failed to save the company as expected. In fact, American Apparel’s recent annual sales record dropped by 33 percent, according to Mark Weinstein. Reports also showed the company was unsuccessful in their efforts to boost sales after Paula Schneider stepped down in September as the company’s new CEO. Though the financial support needed by the company has been secured, it is expected to be exhausted before 2017.
Filing for Chapter 11 bankruptcy, fortunately, is a viable option for business owners who want to give their venture a second chance. If you are facing bankruptcy, consulting an attorney is a critical step to get you the best result in the process. Call an attorney at the Bradford Law Offices, PLLC in Raleigh today at (919) 758-8879 to learn more about your options.