Following the faltering of its made-in-the-U.S. model, American Apparel filed for Chapter 11 bankruptcy. It plans to close down its unprofitable stores to help it stay in business and has already reached agreements with creditors representing 95% of its secured debts to execute a restructuring plan. The 26-year-old company lost about $300 million from 2009 through 2014, according to its bankruptcy filing. It had more than $600 million in revenue in 2014, with 59% coming from its stores, 29% from wholesale transactions and 12% from online. Under the proposed restructuring plan, unsecured creditors would receive cash from a litigation trust and a $1 million cash payment, according to the filing.
