Nearly all American Apparel's United Kingdom stores have closed in light of the brand's second round of bankruptcy proceedings. The closures comes with a total loss of 147 jobs, according to the brand's administrators from KPMG. The Los Angeles-based teen retailer, which was founded by Dov Charney in 1989, gaining fame for its LA-made garments and sexually charged advertising, has closed all but one of its 13 British stores as of Friday.
“Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realize value for the creditors. The Camden store will remain open into January,” Jim Tucker, Joint Administrator and Restructuring Partner at KPMG, said in a statement.
American Apparel first filed for Chapter 11 bankruptcy in the U.S. in October 2015, followed by the second filing in November 2016. Canadian manufacturer Gildan Activewear Inc. has placed a stalking horse bid to acquire the brand’s worldwide intellectual property rights for $66 million U.S, but does not stand to buy into the brand's network of retail stores.
Per Reuters, at least eight US teen retailers, including Wet Seal LLC and Pacific Sunwear of California Inc, have filed for bankruptcy in the past two years as the spending habits of young people shift and they visit malls less often.