Clothing manufacturer and retailer American Apparel is considering entering into bankruptcy protection. The company is based in Los Angeles and would have to raise between $20 and $25 million in order to avoid filing for bankruptcy.
American Apparel is said to have around $5.3 million in cash and reported that it “may not have sufficient liquidity to sustain operations and to continue as a growing concern.”
Last year, the company experienced a 5 percent drop in sales and revenue decreased by around $8.6 million. American Apparel’s largest creditors would most like be Lion Capital and Bank of America Corp. Lion Capital is estimated to be owed $81 million and Bank of America Corp. $58 million.
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