American Apparel is Reportedly About to Return to Bankruptcy
Things aren’t looking good for Dov Charney’s one-time hipster fashion star.
One-time hipster fashion icon American Apparel may be heading into bankruptcy yet again.
The clothing maker famous for its use of semi-pornographic ads is preparing its second bankruptcy filing in less than two years and could make the filing within the next few weeks, reports Bloomberg, citing anonymous sources.
The casual clothing brand has had a rough two years since ousting its controversial founder and CEO Dov Charney in December 2014, six months after he’d been suspended for allegedly misusing company funds and letting nude photos of a former female employee who had accused him of sexual harassment be posted on the web.
After being ousted, Charney filed defamation lawsuits against American Apparel, company chairwoman Colleen Brown, and the hedge fund Standard General, which had loaned him money to increase his stake in American Apparel in exchange for Charney ceding voting rights on his shares.