American Apparel to shutter 13 stores by end of January


American Apparel to shutter 13 stores by end of January

by Sara Ehlers
Nov. 3, 2015

Los Angeles - For the year of 2015, it’s been a rocky journey for American Apparel. Apparently, the brand’s battle is still ongoing as the company has confirmed it will be closing 13 stores as well as separating itself from its Oak Brand.

Earlier last month, the brand filed for Chapter 11 bankruptcy. American Apparel’s decision to do so was after the company had no other options to pay back its excessive debt and increasing costs in legal issues. Due to this filing, the company will also be closing 13 of its retail locations. These stores include locations in California, New York, Florida, Illinois, Maryland, Michigan, and Texas. In the mass store-closure, the brand plans to close under-performing stores under the Oak brand. Two of these stores are in Los Angeles, while the remaining two are located in Williamsburg and Manhattan.

According to WWD, the ruling from the court documents stated, “Rather than devote additional resources and management to turnaround the Oak business, the debtors have determined it is in the best interests of their estates and creditors to divest the Oak business.” The company plans to instead “focus [on] the reorganization of the debtors’ core American Apparel retail and online stores.” The stores are determined to close by January 31, 2016 or sooner.