Once a revered giant in the marketplace, American Apparel has certainly faced its own set of trials and tribulations. Before the immense success of fast fashion labels like Zara and H&M, American Apparel served as the one-stop-shop for all things minimal. But between the founder, Dov Charney's creepy tactics and the caseloads of sexual harassment lawsuits against him, as well as poor overall retail management, it seems like AA is on its way out as the company has officially filed for Chapter 11 bankruptcy protection.
This should come as no surprise as the publicly traded company themselves announced on August 15 that they didn't have the necessary subsidies to maintain operations for much longer. American Apparel stock has dropped over 88% in the past year alone, and they owe over $300 million in debt. Still, the company does not plan on closing any stores yet. Plans of a complete brand overhaul are in the talks, as a new CEO was recently anointed in January of 2015. Things are looking real dismal for the once reigning American Apparel, and we're ready to say bye.