The Biggest Plans to Bring the Company Back into Health Appeal to B2B eCommerce Fashion Consumers
Monday, January 25, American Apparel went before a US bankruptcy judge to determine if they were going to get a chance to rebuild their business. In October, the company was forced to file Chapter 11 Bankruptcy after their sales had declined following the alleged sexual misconduct of CEO Dov Charney. The biggest plans to bring the company back into health appeal to B2B Ecommerce Fashion consumers.
Current CEO of American Apparel, Paula Schneider, celebrated the announcement, stating that it was "a new day for the company", one that provided "a positive outcome" for American Apparel supporters.
The current plan for American Apparel is an entire reconstruction that is intended to give the company a complete turnabout. The company has several plans for doing this. The secured lenders intend to trade $230M in debt to own the company, and intend to provide $80M to the company. $40M will allow American Apparel to leave Chapter 11 bankruptcy, while the other $40M is a secured loan for the company to get back on their feet.
Charney is displeased, and has voiced his displeasure via 1,500 words of anger. He referred to their campaign as a "scorched-earth" attempt to block him from regaining company control. He added that he doesn't "believe the current management has the talent to bring [American Apparel] back to health."
The company faces stark competition with Forever 21 and other leading fashion brands. Currently, the company is anticipating closing 13 stores, though potentially more, while they work on refreshing their image. According to Schneider, they have a strategic plan that involves changes to marketing, store design, products, and customer service