American Apparel Filed For Bankruptcy Protection At The End Of January.

The US clothing brand American Apparel, based in Losangeles, applied to the judges on Tuesday to allow the closure of the 8 additional stores that had not performed well in recent months.

Half of the shops closed in California, including Echo Park Echo Park store in Sunset Strip, shop on St. Monica's Third Street Pedestrian Street, San Diego fashion Valley Shopping Center store,

Stores, and the remaining four stores.

According to court documents, the stores are expected to close in January 30th.

In October this year, American Apparel filed eleventh bankruptcy chapters with the federal bankruptcy court in Delaware.

The reasons for the submission were heavy debt burden, sharp decline in sales volume, employee conflicts and persistent litigation between the company and the expelled founder, Dov Charney.

The company has secured 95% of the secured creditors, and the restructuring is expected to last 6 months. The operation of global stores, including China, will not be affected.

Some stores will be returned to the company's distribution center and then redistributed to other American Apparel stores that continue to operate.

If the bill is approved, the remaining inventory will continue to be sold during the closing period.

The company said in the document that eight stores have an average of 2573 stocks per family.

At present, American Apparel operates approximately 230 stores in the United States and around the world.

The company also requested the court judge to approve the closure of nine American Apparel stores and four Oak brand stores by the end of October.

Oak is a clothing retailer purchased by American Apparel in 2013. It was founded in 2005, mainly selling Rick Owens, Cheap Monday, Comme des Gar, ons and other brands, and also operates its own brand of men's and women's wear series.

In addition to having a physical store, Oak also has an e-commerce website with an annual revenue of about $5 million.

Regarding the reasons for closing the shop, American Apparel said it decided to close eight additional stores that were not performing well and were not suitable for their turnover business plan.

It cited a number of reasons for closing the store, including a lease extension that could not be negotiated, expensive rents and a downward trend in sales that could not be reversed in the first half of November and early December.