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American Apparel’s Restarting After Traveling the Road to Bankruptcy

Executive Summary

  • Despite its controversial advertisements and the scandals surrounding its founder and former CEO, in the end, what matters for American Apparel is customer demand.
  • On August 17, 2015, the company reported that it had experienced its 10th consecutive quarterly loss in the second quarter, with sales falling 17%.
  • The company subsequently filed for bankruptcy on October 5, which will lighten its debt load and let its new management team begin the company’s turnaround.
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