American Apparel files for bankruptcy, taking creepy founder down with it
There’s a run on Spandex in America’s hipster enclaves today as The New York Times reports that American Apparel has filed for bankruptcy. But don’t start stockpiling emergency leggings rations just yet: No layoffs have been announced in connection with the bankruptcy, and all 130 American Apparel stores in the U.S., as well as its overseas operations and the company’s manufacturing center in Los Angeles, are expected to stay open. Instead, the brunt of the bankruptcy will be borne by the company’s stockholders, whose shares will be rendered essentially worthless as American Apparel is taken over by its creditors, including the same hedge fund attempting to make Radio Shack profitable again.