American Apparel Inc. filed for bankruptcy protection on Monday, the latest setback for a company that was thrown into chaos after a battle to oust founder Dov Charney.
The Los Angeles-based clothing manufacturer and retail chain APP, -6.34% has struggled with shrinking sales and an outsize store footprint, as well as litigation tied to Charney, who left the company in December. It filed for chapter 11 in the U.S. Bankruptcy Court in Delaware.
American Apparel plans to restructure its debt, and creditors have committed $70 million of new capital to support the reorganization and recapitalization of the business, the company said. It said they would provide about $90 million in debtor-in-possession financing.
