After months of slipping sales and litigation against its founder, American Apparel filed for Chapter 11 bankruptcy protection on Monday morning. The news, while striking in nature, comes as little surprise. In July, the company said that it might not have enough money to last the year without raising additional capital.
This doesn't mean American Apparel is going away, though. Per an agreement with its lenders, the retailer plans to undergo a financial restructuring and will continue operations, according to a statement from the brand, "without interruption to customers, employees and vendors." So if you're in need of a bodysuit in the near future, you'll be okay.
American Apparel, which had 227 stores as of September, says it aims to complete its restructuring within roughly six months. If all goes according to plan, the retailer will reduce its debt to "no more than $135 million" from $300 million.