Troubled clothing chain American Apparel Inc., losing money and faced with a cash crunch, says it may have to file for Chapter 11 bankruptcy protection before the end of April.
The Los Angeles company warned in a filing with the Securities and Exchange Commission Thursday that it "may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code" if it can't improve its sales or cash position or find other sources of financing to keep it afloat.
American Apparel has been plagued by both financial and image problems. On Friday the company reported a fourth-quarter loss of $19.3 million, or 27 cents per share, compared with net income of $3 million, or 4 cents per share, a year ago. via richgirllowlife