After a difficult year in the market, American Apparel has now filed for bankruptcy. Ongoing conflict with former CEO Dov Charney has kept the ailing retailer in the headlines as it has struggled to manage its increasing debts. By filing for Chapter 11 bankruptcy, the company is said to have slashed the debt from US $ 300 million to US $ 135 million, a move that it hopes will enable it to start rebuilding the brand. “This restructuring will enable American Apparel to become a stronger, more vibrant company. We will be able to refocus our business efforts on the execution of our turnaround strategy to create new and relevant products, launch new design and merchandising initiatives, invest in new stores, grow our e-commerce business and create captivating new marketing campaigns that will help drive our business forward,” said CEO Paula Schneider.
