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Years of controversial advertising couldn't save American Apparel from a trip to bankruptcy court.
Today, the long-troubled company, unprofitable for half a decade, filed for Chapter 11 bankruptcy protection, part of an equity arrangement with creditors designed to trim its debt from $300 million to $135 million. Lenders will provide about $160 million in financing and new capital to keep the company operating during a six-month restructuring phase. All told, American Apparel had approximately 9,000 employees and operates 227 stores in 19 countries.
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