First up: American Apparel. Yesterday was the controversial and struggling company’s last day to prove that they are in a good enough financial position to pay off their $125 million and growing debt.
Obviously, they’re not. But the company was luckily able to strike a deal with its lenders to avoid default today. Dov Charney’s baby now has 10 more days of breathing room to hopefully negotiate a permanent waiver.
In other fashion retail news, J.Crew Group Inc. shareholders, who sued the company over the proposed takeover by TPG Capital and Leonard Green & Partners, are backing out of a $10 million settlement deal from the brand. J.Crew continues its plans to hold a shareholders vote on the deal in March.