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American Apparel closes Lower East Side branch after bankruptcy

Famed clothing store American Apparel filed for Chapter 11 bankruptcy on October 5, just a year after CEO and founder Dov Charney was fired by the board in 2014 due to a scandal in the workplace. The company has about 8,500 employees at six factories and 230 stores in the United States and seventeen other countries.

American Apparel recently closed their longtime Lower East Side branch in Manhattan after the bankruptcy news came out weeks ago. The storefront windows were lined with paper and displayed a note that directed customers to their branches in the NoHo and SoHo Manhattan neighborhoods.

A spokesperson for American Apparel said that the closure of the store is the “next step in implementing our previously announced turnaround plan, which includes closing underperforming locations and investing in new stores in promising areas.”

If you or your company is on the verge of bankruptcy, consult with our legal team of bankruptcy attorneys at Gagnon, Peacock & Vereeke, P.C., to discuss the legal options that are available to you at this time. Call us today at (214) 824-1414.