Industry Supplier American Apparel Files for Bankruptcy

05 Oct Posted by in Swag Projects | Comments
Industry Supplier American Apparel Files for Bankruptcy
 

In a breaking news alert, ASI Central reported today that top 40 supplier American Apparel has filed for Chapter 11 bankruptcy. While the filing is yet to be approved by courts, the proposed restructuring plan would cut American Apparel’s debts from $311 million to $120 million. CEO Paula Schneider will remain in control of the company and no layoffs or store closings have been announced. The restructuring is likely to be completed in the next six months.

American Apparel has faced both sales and profit losses in 2015. Their Q2 wholesale revenues went from $54 million to $48 million in just a year and their retail sales dropped from $94 million to $74 million.

“Our debt load simply wasn’t sustainable. You can’t do a turnaround plan without cash,” said CEO Schneider. American Apparel is #14 on ASI’s list of top 40 North American suppliers to the promotional products industry. Last year their ad specialties sales reached $102.5 million.

Source: http://www.asicentral.com/news/newsletters/promogram/october-2015/american-apparel-files-for-bankruptcy/