American Apparel Files for Bankruptcy

American Apparel filed for bankruptcy protection early Monday, The Wall Street Journal reports. The Los Angeles-based retail chain has struggled with a drop in sales and legal battles with its ousted founder, Dov Charney, who left the company in December. The Chapter 11 petition was approved by the company’s board and filed in a federal bankruptcy court in Delaware. Creditors have allegedly agreed to give additional funds to the company’s operations in bankruptcy and finance its exit from Chapter 11, the Journal reports. American Apparel plans to restructure its debt and shutter stores, but no layoffs were announced in the filing.