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American Apparel files for bankruptcy protection, again

Posted: 11:32 AM, Nov 14, 2016
Updated: 2016-11-14 16:32:33Z
American Apparel files for bankruptcy protection, again

WASHINGTON (AP) — American Apparel is seeking bankruptcy protection for the second time in just over a year, unable to find its footing even after a contentious fight for control with founder Dov Charney.

Canada's Gildan Activewear is buying the brand, notorious for its advertising campaigns, for $66 million.

The Los Angeles retailer first filed for Chapter 11 bankruptcy protection in October 2015, about a year after it fired Charney for violating its sexual harassment policy. Charney's legal campaign to retake control of the company was rejected by a bankruptcy court judge in January.

Charney denies the sexual harassment charges and has claimed the company was taken from him in a "coup."

American Apparel has lost money every year since 2010.