American Apparel LLC filed for its second bankruptcy protection in just over a year on Monday, weighed down by intense competitive pressures facing U.S. teen retailers and a rocky relationship with its founder.
The second bankruptcy comes as the retailer struggles to overcome years of losses and rising online competition. The company became a part of popular culture for its racy advertising and mercurial founder, Dov Charney.
American Apparel is hoping buyers step up to salvage the rest of its business, according to bankruptcy court papers. However, the only deal the cash-strapped company has in hand is from Canada’s Gildan Activewear Inc., which is offering about $66 million for the intellectual property, some wholesale inventory and an option on manufacturing and distribution assets.