American Apparel Files Chapter 11 Bankruptcy
The fashion industry can be fickle. Tastes change. Sales can suddenly take a nosedive. Think about K-Mart, J.C. Penneys. Another popular retailer ran into tough times. It did what many in Broward County do. It turned to a bankruptcy attorney for help. The retailer, American Apparel, was forced to make some tough choices and filed a Chapter 11 bankruptcy case to save the business. Most people are familiar with Chapter 7 bankruptcy or Chapter 13 bankruptcy filings. Chapter 11 is for businesses. It gives them the time and flexibility they need to reorganize their debt.
Bankruptcy Attorneys Are Critically Important to Businesses in Trouble
The work of the bankruptcy attorney in the American Apparel case is critically important. The actions of the attorney(s) will allow the company to remain in business, change their ways to adapt to a new normal in the retail space and potentially remain in business for years post bankruptcy. This Chapter 11 bankruptcy will enable the American Apparel to keep its manufacturing operations in Los Angeles.
The bankruptcy will also allow American Apparel to keep open the 130 retail stores spread throughout the United States. This will save the jobs of all the employees here in America. The deal was brokered between the bankruptcy attorney for the company and the secured lenders that were owed the debt. The bondholders will forgive the debt, and in return they will receive shares in the company. The bankruptcy filing makes the survival of the company now in the best interests of all the parties involved.
This is a great example of how a bankruptcy filing can give everyone a fresh start: business or an individual. If you need a fresh start in South Florida, whether it be in Broward County, Miami-Dade County, or Palm Beach County, do not be afraid to ask for help. That is why the bankruptcy code is there.
Call Bankruptcy Attorney, Howard Butler Today
Most bankruptcy attorneys, including me, Howard Butler, give FREE initial consultations. Find out what works best for you. A quick call to a local bankruptcy attorney could change everything. It did for American Apparel and its many employees. Thanks to their bankruptcy attorney, the burden of debt is over for the company. It can be over for you too. You can find out with only a few minutes of your time. Call me, Howard Butler, at (954) 797-5338