June 6, 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

Amazon Brings ‘The Boys’ to Life with Satirical Ice Show at Century City Mall

June 6, 2025

June 6, 2025

Fans Can Experience Holiday-Themed Skating Show and Costume Exhibits Amazon MGM Studios is bringing a frosty dose of satire to...

Reality Star Abby Lee Miller Sues Cedars-Sinai Over Catheter Left in Body After Surgery

June 5, 2025

June 5, 2025

Miller Is Seeking $1.5 Million in Damages, Claiming Doctors Failed to Remove a Catheter Abby Lee Miller, the former star...

Peacock Declares ‘BLSH*T Day’ with Free Burgers Across L.A. to Celebrate “Poker Face” Season 2

June 5, 2025

June 5, 2025

Streaming Platform Partners With 13 Burger Spots for One-Day Giveaway on June 7 To mark the return of its mystery...

LAPD to Conduct DUI Checkpoint and Saturation Patrols Starting June 6

June 5, 2025

June 5, 2025

First-Time DUI Offenders Face Steep Penalties and Suspension of License The Los Angeles Police Department will conduct a DUI checkpoint...

Marina del Rey Sportfishing: A Great Day on the Water

June 5, 2025

June 5, 2025

Fishing is a pastime like no other, America’s Most Popular Outdoor Activity for Year in and Year out! You can...

(Video) See How CO2 Laser Treatment Removes Wrinkles and Scars

June 5, 2025

June 5, 2025

To Book an Appointment, Go to Mirrormirrormedspa.com To Book an Appointment, Go to https://t.co/GQ7DNcGw8E pic.twitter.com/OdAVVpLIcw — CCNewsLA (@CCWNNews) June 5,...

Film Review: Dangerous Animals

June 4, 2025

June 4, 2025

By Dolores Quintana There’s nothing quite like a good shark horror movie, especially since we are heading into summer. With...

Erewhon and LGBTQ Singer Kali Uchis Serve Summer Smoothie for a Good Cause

June 4, 2025

June 4, 2025

The Sincerely Smoothie Blends Passionfruit, Pitaya, and Malk Coconut Milk LGBTQ singer Kali Uchis has teamed up with Erewhon to...

Levain Bakery and Wanderlust Creamery Team Up for a Sweet Cause This Saturday

June 4, 2025

June 4, 2025

Lily Rosenthal and Chef Mason Royal Host a Cookie & Ice Cream Celebration Larchmont’s Levain Bakery will host a community...

Vietnamese Street Food Pop-Up ‘Little C’ Returns to Crustacean for Limited Lunch Series

June 4, 2025

June 4, 2025

After a Sold-Out Debut, the Fan-Favorite Phở-Forward Concept Reopens  Following a sold-out debut, the Vietnamese street food concept “Little C”...

Fogo de Chão Unveils Fiery Off-Menu Cocktail, the Paper Flame

June 4, 2025

June 4, 2025

Tequila-Based Drink Features a Dramatic Tableside Presentation Fogo de Chão has unveiled its first-ever secret cocktail, the Paper Flame, an...

Marelle Launches ‘The Guest List’ With Renowned Chefs and Friends Alan Wong and Raphael Lunetta

June 4, 2025

June 4, 2025

Santa Monica’s New Chef Series Debuts With a Culinary Celebration of California and Hawaiian Flavors Marelle, a coastal dining destination...

Culver City’s Citizen Public Market Launches Summer Lineup of Food and Art

June 4, 2025

June 4, 2025

From Brats to Biryani: Citizen Public Market Unveils Fantastic New Flavors  Culver City’s Citizen Public Market is rolling out a...

(Video) Some of the Damage Caused By Vandals at Malibu High School Overnight

June 4, 2025

June 4, 2025

40 to 50 people, who are suspected to be students or recent alumni, used eggs, flour, and markers to deface...

Biggest Night of the Year: Don’t Miss GMCLA’s ‘Dancing Queens’

June 3, 2025

June 3, 2025

Culminating its 46th season, the Gay Men’s Chorus of Los Angeles will grace the crowd with Dancing Queens, celebrating iconic...