June 14, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

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

Marina del Rey Sportfishing: A Great Day on the Water

June 14, 2024

June 14, 2024

Fishing is a pastime like no other. You can experience the nostalgia of that pastime in real time at Marina...

University of Miami President to Replace Gene Block Amid Controversy

June 14, 2024

June 14, 2024

Julio Frenk Named New UCLA Chancellor at UC Regents Meeting The search for a new chancellor at UCLA is over....

Culver City Police Collaborate with VA and LASD to Aid Unhoused Veteran

June 14, 2024

June 14, 2024

Joint Efforts Lead to Successful Assistance for a Veteran in Need The Culver City Police Mental Evaluation Team collaborated with...

West Hollywood Kicks Off WeHo Pride Arts Festival This Weekend

June 14, 2024

June 14, 2024

Celebration Features Diverse LGBTQ+ Events From June 14-16 Each year, the City of West Hollywood celebrates the artistic contributions of...

30th Anniversary of Nicole Brown Simpson and Ron Goldman Murders Commemorated with Virtual Vigil

June 13, 2024

June 13, 2024

Family Honors Nicole Brown Simpson and Ron Goldman in Virtual Candlelight Vigil This week marks the 30th anniversary of the...

Culver City PRCS Hosts Summer Splash Kick-Off Event

June 13, 2024

June 13, 2024

Join PRCS for Fun-Filled Recreational Swim Activities The Parks, Recreation, and Community Services (PRCS) department of Culver City is gearing...

Students for Justice in Palestine Establish Third Encampment on the UCLA Campus on June 10

June 12, 2024

June 12, 2024

UCLA Administration Calls in Four Police Groups Within Two Hours, Arrests 27 Pro-Palestinian protesters briefly established a third encampment on...

Los Angeles City Council Postpones Vote on Marilyn Monroe’s Former Home

June 12, 2024

June 12, 2024

Decision on Historic Monument Status Rescheduled for June 26  After Judge James Chalfant issued a preliminary decision on the motion...

AMC Theatres Unveils Eight Money-Saving Deals for Summer Movie Season

June 12, 2024

June 12, 2024

Enjoy Discounted Tickets, Special Promotions, and Fan Favorites at AMC If you are a movie lover who has not been...

Hang-Ten Therapeutics-Surf Therapy for Kids: Catching Waves and Finding your Calm

June 12, 2024

June 12, 2024

A different type of therapy is making waves in Los Angeles. Hang-Ten Therapeutics, founded by Naomi Matanick, a licensed pediatric...

(Video) The Opening of Pico Roots Marketplace in Santa Monica

June 12, 2024

June 12, 2024

Lots of friendly vendors with wonderful gifts, cards, clothing, decor, and coffee beans available at 1819 Pico Boulevard. @culvercitywlanews The...

Tien Pham Connects Personal History with Role in Robert Downey Jr.’s “The Sympathizer”

June 11, 2024

June 11, 2024

Family’s Harrowing Escape From Vietnam Mirrors the Acclaimed HBO Max Series Vietnamese American actor-musician-producer Tien Pham finds a deep connection...

The Coffee Bean & Tea Leaf Debuts Refreshing Summer Menu with New Boba and Matcha Drinks

June 11, 2024

June 11, 2024

Enjoy Four New Beverages and Exclusive Boba Happy Hours from June 10 to June 13 The Coffee Bean & Tea...

FDA Issues Warning on Potentially Contaminated Shellfish from Oregon and Washington

June 11, 2024

June 11, 2024

Shellfish From These Areas Carries Risk of Paralytic Shellfish Poisoning The FDA has issued an alert advising consumers, restaurants, and...

(Video) Pro-Palestine Student Protesters at UCLA Set Up a Third Encampment on Monday Afternoon

June 11, 2024

June 11, 2024

UCPD and the UCLA Administration almost immediately called in UCPD, LAPD, Culver City Police Department and California Highway Patrol officers....