On the 4th October, retailer American Apparel revealed how they have filed for bankruptcy after a tumultuous year and a half.
American Apparel have been in the headlines after former CEO Dov Charney admitted he was struggling to manage the store’s mounting debts since last December.
By filing for Chapter 11 bankruptcy, the company is said to have slashed the debt from $300 million to $135 million, a move that it hopes will enable it to start rebuilding the brand.
Current CEO Paula Schneider states: “This restructuring will enable American Apparel to become a stronger, more vibrant company.”
“By improving our financial footing, we will be able to refocus our business efforts on the execution of our turnaround strategy as we look 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.”
Schneider, who was appointed in the wake of Charney’s exit, has implemented a number of strategic changes as well as new operational processes that have been publicly criticised by supporters of Charney who have held a number of rallies calling for the controversial former CEO to be reinstated.
All eyes will be on the company moving forward to see if its new tactic wil reverse its fortunes.