American Apparel closing more stores

American Apparel wants to close more stores as it moves forward with a plan to reorganize under Chapter 11 bankruptcy protection.

The troubled retailer has petitioned the bankruptcy court to close nine stores, including the company's very first location in the Echo Park neighborhood of Los Angeles, according to Women's Wear Daily.

Additional stores scheduled for closure include three in southern California and two in the New York City market, including Jersey City, New Jersey and Norwalk, Connecticut. American Apparel also requested permission to close stores in Madison, Wisconsin and Tigard, Oregon.

All locations are slated to close on Jan. 30, according to the Silicon Valley Business Journal, and follow an earlier request to shutter nine units.

American Apparel is struggling to emerge from Chapter 11 following a tumultuous period marked by executive in-fighting between the board of directors and founder Dov Charney.

Charney was fired in December for alleged misconduct, including the misuse of funds and sexual misconduct with other employees. He and other shareholders will lose their stake in the company. Charney owned a 42 percent stake in American Apparel and was also the biggest creditor, holding $15 million in debt.

Charney has filed several lawsuits against the company, which will likely be delayed due to the bankruptcy.

For more:
-See this Women's Wear Daily story (subscription required)
-See this article in the Silicon Valley Business Journal

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