In Bankruptcy Again, American Apparel Still Takes On Massive Debt

Filene's Basement filed Chapter 11 three times in 12 years, essentially Chapter 33, before closing for good. The idea is that a company goes into Chapter 11, restructures and emerges ready to whether the current economic industry conditions, and packed full of long term plan after long term plan for success, or at least an event that leads to value.
Every investment banker appreciates a good loan. However, apparel companies in this day and age cannot afford debt with a premium.
American Apparel is currently liquidating assets and most of it has been sold to Gildan.

Some companies never make it out of bankruptcy, and -- like Filene's -- end up liquidating. But for those that do emerge, and then tumble into bankruptcy again, it's a failure of everyone involved.

- Ed Altman, the Max L. Heine Professor of Finance at the Stern School of Business at New York University (Reuters 2012 Article Link)

Recent News: The retailer secured a $30 million financing package from post-bankruptcy lender Encina Business Credit LLC to fund the costs of its chapter 11 case prior to its November bankruptcy filing.