American Apparel LLC filed for its second bankruptcy protection in just over a year, weighed down by intense competitive pressures facing U.S. teen retailers. Bobbi Rebell reports.
American Apparel is filing for bankruptcy protecion for the second time in just over a year. The retailer is struggling with online competition and has been losing money for years. American Apparel rose to prominence with sexually charged advertising and became part of pop culture. But that has not been enough to overcome intense competitive pressures facing U.S. teen retailers- At least eight U.S. teen retailers, including Wet Seal and Pacific Sunwear, have filed for bankruptcy in the past two years. Teens spending is more focused on technology than clothing these days, and apparel retailers are seeing it on their bottom lines. Separately, Canadian apparel maker Gildan Activewear said it agreed to buy intellectual property rights related to the American Apparel brand and certain assets from American Apparel for about $66 million in cash.