Sarah (star_cuddles) wrote in ohnotheydidnt,
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American Apparel warns it may file for bankruptcy



Troubled clothing chain American Apparel Inc. says it may have to file for Chapter 11 bankruptcy protection.

The New York company indicated in a filing with the Securities and Exchange Commission that it "may not have sufficient liquidity to sustain operations and to continue as a going concern."

The retailer says if it can't improve its cash position, it may need to seek bankruptcy protection.

American Apparel, which also reported a fourth-quarter loss Friday, has been plagued by problems.

In October it amended a credit agreement with Lion Capital.

That same month it avoided being delisted by the New York Stock Exchange Amex LLC after submitting a plan related to its financial filings.

A former worker also has sued founder Dov Charney, alleging he sexually abused her.
source
Tags: fashion, legal / lawsuit
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