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American Apparel Is Officially Bankrupt

But they’re not saying goodbye just yet.
American Apparel Is Officially Bankrupt But they’re not saying goodbye just yet.

Three months ago, we shared with you the two things we can all learn from American Apparel’s apparent money trouble. Things pretty much spiraled down from there because yesterday, the company has officially filed for bankruptcy.

One of their more PG ads. 

Everyone’s then-favorite hipster brand known for its controversial and sensual ads has come to terms with the fact that its decline in sales, multiple lawsuits, and internal struggles were proving too much for it to stay afloat. Since 1989, the label has been working hard to be right up there with brands such as Urban Outfitters and Abercrombie and Fitch to provide the cool kids their share of skimpy hip-sentials, but alas, time has caught up with it. Basically, competition is stiff and AA simply doesn't know what to do with the inventory backlog anymore. 

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Jacky O' Shaughnessy for American Apparel

Don’t get too sad though, because the chain is not going anywhere… or at least not yet. With their attempts to restructure the brand (a big breakthrough was their ad featuring 62 year-old  Jacky O'Shaughnessy), the American clothing retailer is hoping for its final lifeline subject for approval by the bankruptcy court. Once permitted, financiers will aid the debt problem by shouldering some of the money it owes, decreasing the company's liabilities from $311 million down to $120 million. Lawsuits will also be put on hold.

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Right now, AA very much seems like a girl who came crumbling down after a bad breakup. What it needs now is to put the pieces back together and get a makeover!

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