American Apparel is back in bankruptcy court
American Apparel is seeking bankruptcy protection for the second time in just over a year, unable to find its footing even after a contentious fight for control with founder Dov Charney.
Canada’s Gildan Activewear is buying the brand, notorious for its advertising campaigns, for $66 million.
The Los Angeles retailer first filed for Chapter 11 bankruptcy protection in October 2015, about a year after it fired Charney for violating its sexual harassment policy. Charney’s legal campaign to retake control of the company was rejected by a bankruptcy court judge in January.
Charney denies the sexual harassment charges and has claimed the company was taken from him in a “coup.”
American Apparel has lost money every year since 2010.