American Apparel is said to be preparing for its second bankruptcy filing in just two years, according to people familiar with the situation, "capping a tumultuous stretch that included tumbling sales, red ink and a split with controversial founder Dov Charney," per Bloomberg. "The filing may come as soon as the next few weeks, according to the people, who asked not to be identified because the discussions aren’t public."
The troubled retailer - which is known for its American-made garments and its overly sexualized ad campaigns - emerged from its first round of bankruptcy in February, which saw Monarch Alternative Capital take over the company. Per Bloomberg, "A turnaround plan to return to American Apparel’s roots and focus on basic items like T-shirts and skirts didn’t improve results enough, according to the people. The company also has hired restructuring firm Berkeley Research Group for guidance, the people said."
Reuters reported earlier this month that Brand licensors Authentic Brands Group LLC and Iconix Brand Group Inc. have expressed interest in acquiring American Apparel, negotiations could lead to a bankruptcy.