Los Angeles — American Apparel, LLC, a manufacturer, distributor and retailer of branded fashion-basic apparel, has emerged from Chapter 11 as a private company after successfully implementing its plan of reorganization, approved by the Delaware bankruptcy court on January 27, 2016.
Under the reorganization plan, the company also converted its corporate form from a Delaware corporation to a Delaware limited liability company and, therefore, is now known as American Apparel, LLC.
“This is the start of a new day at American Apparel,” says CEO Paula Schneider. “With the enormous debt burden removed, we can now turn our full attention to our strategic turnaround, which will benefit our customers, vendors and employees. Our strategy will focus on: designing fresh products and merchandising; launching new partnerships to grow the e-commerce platform; unveiling progressive advertising and marketing campaigns; investing in brick-and-mortar retail locations in more promising areas; and implementing rigorous planning and forecasting for timely product deliveries and to streamline excess inventory.”
American Apparel’s legal advisor in connection with the restructuring was Jones Day. FTI Consulting served as its restructuring advisor and Moelis & Company served as its investment banker for the restructuring. Milbank, Tweed, Hadley & McCloy LLP was the legal advisor to the bondholders and Ducera Partners LLC served as restructuring advisor.
As of February 1, 2016, American Apparel, LLC operated 202 retail stores in 19 countries including the United States and Canada. For more information, visit http://www.americanapparel.com.
SOURCE: American Apparel