National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
American Apparel Is Bankrupt
American Apparel is bankrupt.
The Los Angeles-based fashion retailer filed for Chapter 11 bankruptcy protection, reaching agreements with 95 percent of its lenders to cut down debt and interest owed. This would eliminate about $200 million in bonds that would be replaced by shares of a reorganized American Apparel.
In its most recent quarter, American Apparel reported a 17-percent drop in revenue. Net losses have totaled $384 million in the last 5.5 years. The measure will allow the company to also now close underperforming stores.
