May 15, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

American Apparel Emerges From Chapter 11 Reorganization

American Apparel
Last month, American Apparel rejected a $300 million takeover bid from investors who supported the return of ousted founder and CEO Dov Charney (Thinkstock).

Los Angeles-based American Apparel announced today that it has emerged from Chapter 11 bankruptcy protection as a private company after successfully implementing a reorganization plan.

A Delaware bankruptcy court approved the plan Jan. 27.

American Apparel’s restructuring converts about $230 million of bonds into equity. It also provides $40 million of added capital and a commitment for a $40 million asset-backed loan.

That funding will be vital in supporting the firm’s turnaround plan, which additionally will be aided by a $20 million decrease in interest owed to creditors made possible by the reorganization.

An integral aspect of the approved deal was American Apparel’s switch from a public corporation to a private limited liability company, requiring a name change to American Apparel, LLC.

“I’m pleased to announce that our plan of reorganization … has now enabled us to emerge from bankruptcy in just a few short months,” CEO Paula Schneider said. “This is the start of a new day at American Apparel. With the enormous debt burden removed, we can now turn our full attention to our strategic turnaround.”

Last month, American Apparel rejected a $300 million takeover bid from investors who supported the return of ousted founder and CEO Dov Charney.

When the plan was approved, Charney said he was “disappointed” by the reorganization proposal.

“This outcome is one that I have been working tirelessly for nearly two years to avoid in an effort to protect value for the company’s various stakeholders,” Charney said.

“Now all stockholders will have their shares and value extinguished. Many of the company’s loyal vendors will recover only cents on the dollar of what the company owes them,” Charney said. “And the company’s workers, faced with current management’s inability to generate profits, face a highly uncertain future.”

Charney said he remained proud of his attempt to keep American manufacturing in the U.S. since relocating the company to Los Angeles in the late 1990’s from South Carolina.

According to Charney, the “sad reality” is that American Apparel — which he called the largest garment manufacturer in the United States — “will not survive at this pace and I don’t believe the current management has the talent to bring it back to health.”

Related Posts

Film Review: Mission: Impossible The Final Reckoning

May 15, 2025

May 15, 2025

By Dolores Quintana Mission: Impossible The Final Reckoning is a ridiculously entertaining action film with a core of what humanity...

Pico-Robertson’s Cardinal du Vin Pairs Sake with Charcuterie This Saturday

May 15, 2025

May 15, 2025

LA.’s Moon Bloom Sake to Pour Premium Small-Batch Varieties Wine bar and bistro Cardinal du Vin will present a special...

(Video) Where great minds grow at The Willows Community School

May 15, 2025

May 15, 2025

The Willows, a DK-8 co-educational school, enrolls 474 students from 57+ zip codes annually. As a balanced, progressive educational leader, experiential learning,...

Experience You Can Trust, Beards You Can Admire: Economy Roofing’s 75-Year Legacy in Santa Monica CA

May 15, 2025

May 15, 2025

Driving along Santa Monica Blvd., you may have seen a playful billboard featuring two rugged men with impressively big beards,...

Michelin Guide Adds 13 California Restaurants to 2024 Selection, Including Two in L.A.

May 14, 2025

May 14, 2025

Two Join the Prestigious List as “Recommended” Ahead of the June 25 Awards Ceremony The Michelin Guide unveiled 13 new...

“Yes, Chef!” Pits Tempers Against Talent in José Andrés and Martha Stewart’s New Culinary Series

May 14, 2025

May 14, 2025

Twelve Rebellious Chefs Compete for $250,000 in a Transformative Cooking Competition Celebrity chefs José Andrés and Martha Stewart are teaming...

Santa Monica City Council Approves Outdoor Drinking Zone on Third Street Promenade

May 14, 2025

May 14, 2025

New “Entertainment Zone” Will Allow Alcohol Consumption in Public Spaces If you have ever wished to have a cocktail or...

Outloud Presents Pride @ Bev Returns With Rupaul’s Drag Race Stars, and Fundraising for LGBTQ+ Youth

May 14, 2025

May 14, 2025

Beverly Center to Host Third Annual Pride Celebration May 17 with Drag Shows, Music, and More The Beverly Center will...

(Video) Pacific Resident Theatre Debuts “Fostered”: A Comedy About Authenticity and Life Choices

May 13, 2025

May 13, 2025

Firefighters and Wildfire Victims Have Free Admission to a Special May 16 Performance. For More Info, Go To Pacificresidenttheatre.org Firefighters...

State Farm Wins Emergency Approval to Raise Insurance Rates After Alleged $7 Billion Wildfire Loss

May 13, 2025

May 13, 2025

California Regulators Approve Interim Premium Hikes for Homeowners, Renters, and Landlords Citing extraordinary wildfire-related losses, State Farm has been granted...

Registration Now Open for Summer at New Roads

May 13, 2025

May 13, 2025

New Roads School is accepting registration for its summer program, a vibrant selection of classes and camps curated to meet...

AMC Theater Launches 50% Off Movie Tickets on Wednesdays 

May 13, 2025

May 13, 2025

 See More Movies for Less Money at AMC Theaters This Summer Great news for movie fans, starting July 9, catching...

Culver City to Host Booze-Free Bash as Part of Nationwide Sober Celebration on Wednesday

May 13, 2025

May 13, 2025

“Vibes After Five” and Curious Elixirs Team Up for Alcohol-Free Cocktails, Music, and Games A unique twist on the traditional...

Judge Reduces Menendez Brothers’ Life Terms, Citing Sincere Rehabilitation

May 13, 2025

May 13, 2025

Menendez Brothers Express Remorse as Judge Grants Path to Parole More than three decades after they were imprisoned for the...

Beverly Hills to Conduct Emergency Siren Test Across City This Week

May 13, 2025

May 13, 2025

Sirens Will Sound as Part of Safety Program Checkup Three-minute activation of Beverly Hills’ Outdoor Warning System will take place...