Clothing Company "American Apparel" Bankrupt

American Apparel (photo: Getty Images)

Los Angeles - clothing company American Apparel Inc. declared bankrupt on Monday (5/1) local time. The company is famous for its controversial advertisements that employ minors to pose too sensual. Moreover, the founder of American Apparel, Dov Charney, is also known to have a controversial personality related fashion taste.



The company did not produce a profit since 2009. According to the Lloyd Greif, Chief Executive Officer of the Investment Bank Greif & Co., the bankruptcy of American Apparel to make the company become an attractive acquisition target. However, the CEO of American Apparel, Paula Schneider said the company does not plan to sell its stake immediately.

"In my opinion, capital owners interested in having this company," Schneider said, quoted by Reuters.

According to Greif, some potential buyers are Leonard Green & Partners, Gores Group, Platinum Equity and Sequential Brands Group. Platinum Equity and Sequential Brands declined to comment while others could not be reached.

People who lose the most from the collapse of American Apparel is the founder of the company itself. Dov Charney was dismissed from the post of CEO in December 2014 and as proven embezzled company funds and failed to prevent his subordinates create a blog article defaming a former employee of the company.

(nusantaran.com)