April 24, 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

The Brian Jonestown Massacre Drops New Double A-Side Ahead of U.S. Tour

April 24, 2025

April 24, 2025

Legendary Psych-Rockers Set April 25 Release and Fall North American Tour The Brian Jonestown Massacre is set to release a...

(Video) Matú Kai Brentwood: The full experience

April 23, 2025

April 23, 2025

Sister restaurant to Matú in Beverly Hills, located at 11777 San Vicente Blvd. Sister restaurant to Matú in Beverly Hills,...

Uncle Stevey’s Bagels Wins Westside Hearts with Next-Level Bagels, Premium Sandwiches, and Local Coffee

April 23, 2025

April 23, 2025

Family-Run Shop Serves Delicious and Thoughtfully Curated Bagels With Love By Dolores Quintana A little more than a year since...

Santa Monica’s Socalo Toasts Pali Wine Co. with a Five-Course Culinary Celebration

April 23, 2025

April 23, 2025

Enjoy Celebrated Central Coast Wines, Including a 100-Point Red Blend Socalo, the acclaimed Mexican restaurant from celebrity chefs Mary Sue...

Go Go Bird Teams Up with Chef Chris Oh for Korean-Inspired Fried Chicken Sandwich

April 23, 2025

April 23, 2025

Crispy, Saucy, Spicy: Chris Oh’s Fried Chicken Sandwich Lands in Culver City Go Go Bird, located in Culver City’s Citizen...

Fogo de Chão Hosts Wine Lover’s Dream Night with Chilean Winery VIK

April 23, 2025

April 23, 2025

Diners Will Enjoy a Chef-Curated South American Menu, Highly Rated Wines Wine lovers and culinary connoisseurs are invited to gather...

Skip Traffic, Relax, Catch a Vibe: Midweek Sunset Party Lands on the Westside

April 23, 2025

April 23, 2025

DJ Jason Bentley, Mocktails, Games, Food Trucks, Light Up Fox Hills Commuters looking to escape rush hour gridlock on Thursday,...

Representative Brad Sherman in Person at CSUN Town Hall This Weekend

April 23, 2025

April 23, 2025

Constituents of California’s 32nd District Invited to an In-Person Q&A Session U.S. Rep. Brad Sherman will hold an in-person town...

(Video) A Myriad of Ways to Unlock Your Beauty Offered at Mirror Mirror Med Spa

April 23, 2025

April 23, 2025

For More Info, Go To Mirrormedspa.com For More Info, Go To https://t.co/1DP3ZKbfDt pic.twitter.com/OVvHuTjETC — CCNewsLA (@CCWNNews) April 23, 2025

New York Film Academy in Los Angeles Offers Summer Camps, Programs

April 22, 2025

April 22, 2025

New York Film Academy in Los Angeles is hosting several summer camps for teenagers and kids, providing practical training in...

Cinespia Returns to Hollywood Forever With Cult Classics and a David Lynch Tribute

April 22, 2025

April 22, 2025

Hollywood Forever Cemetery Becomes a Moviegoer’s Paradise Once Again Cinespia, Los Angeles’ beloved outdoor cinema series, will return to Hollywood...

Major I-405 Rehab Project Unveiled: Caltrans to Host Virtual Info Meeting

April 22, 2025

April 22, 2025

Sepulveda Pass Overhaul: New Pavement, Safer Roads, Better Commutes The California Department of Transportation (Caltrans) will hold a virtual informational...

San Fernando Valley Man Gets 5 Years for Beverly Hills Bank Fraud and Identity Theft

April 22, 2025

April 22, 2025

Federal Prison for ID Thief Who Raided Beverly Hills Mailboxes for Millions A North Hills man was sentenced Monday to...

Academy Announces Major Changes for 98th Oscars, Including AI Rules and New Casting Award

April 22, 2025

April 22, 2025

Academy Now Requires Viewing All Nominees to Cast Final Ballots The Academy of Motion Picture Arts and Sciences has unveiled...

Pepper Spray and Panic: LA Homeowners Targeted in Nighttime Burglaries

April 22, 2025

April 22, 2025

LAPD Hunts Suspects After One Resident Attacked in Beverly Grove Two separate home invasions late Friday night in Beverly Grove...