American Apparel considers entering bankruptcy

by DeLadurantey Law Office, LLC on April 19, 2011

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.

If you or someone you know is considering filing for personal bankruptcy in Milwaukee, contact the Milwaukee personal bankruptcy lawyers of DeLadurantey Law Office, LLC at 414-377-0518 to learn more about how we can help you.

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