One day after American Apparel filed for Chapter 11, the Los Angeles-based clothing maker’s lawyer, Scott Greenberg, revealed to a Delaware bankruptcy court that its turnaround plan involves hedge fund Standard General taking ownership of the company.

The struggling chain said Monday that its retail stores, wholesale and U.S. manufacturing operations would continue to operate as normal under a restructuring deal reached with 95 percent of its secured lenders that would reduce its debt from $300 million to $135 million.

Read more at Sourcing Journal.

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