American Apparel is waiting for court approval on a restructuring plan that it’s made with 95% of its debt holders. The deal would allow the company to stay open and part of the plan includes closing stores that aren’t profitable. The company operates 230 stores and six factories, reports USA Today.
American Apparel is looking to change how it operates as part of the restructuring plan. This will include new marketing, redesigned stores and different products. The comapny’s web business hasn’t been performing as well as competitors’ and it noted that its seasonal planning wasn’t up to par, USA Today notes.
News that American Apparel has filed for Chapter 11 bankruptcy doesn’t come as a surprise. The company filed a report with the SEC in August saying that it didn’t have the funds to operate for another 12 months.