American Apparel Stores Close in Nine Cities

by San Antonio Attorney

American Apparel stores are slated to close by the end of this year. Several store locations are going to close as part of the company’s bankruptcy plan.

The clothing retailer, which is based in Los Angeles, installed a new chief executive to chart a turnaround plan that eventually failed.

A total of nine shops will be closed. They are located in Memphis, Burlington, Atlanta, Dallas, Vermont, Illinois, Evanston, New York, Washington, Seattle and Santa Cruz, California.  The bankruptcy court judge has been asked to approve a going-out-of-business sale on Dec. 19.

American Apparel intends to sell its 101 stores on January 9.

Canadian clothing manufacturer Gildan Activewear is offering to acquire the brand name for $66 million.

American Apparel began in 1998 as a distributor of T-shirts and ultimately created an image around sexually provocative promotion for fashionable goods and a policy to manufacture all of its clothing in America.

However, an immigration raid that occurred in 2009 slowed down the company. Dov Charney, the company’s founder, was booted out five after accusations of sexual harassment arose and resulted in lawsuit.

In 2015, American Apparel sought for bankruptcy protection in 2015 and under the direction of Standard General L.P. along with other bond holders stooped Charney’s plan to regain his position in the company, and then Paula Schneider was installed as CEO of the 4,700-employee business. She resigned in October.

The company is just one of the many struggling retailers devastated by shifting tastes among teenagers and young adults and the increase of online shopping.   Deilia’s, Aeropostale, Wet Seal  and Pacific Sunwear have also recently filed for bankruptcy.

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