American Apparel predicts return to profitability in 2018

Although American Apparel filed for Chapter 11 bankruptcy last week, the clothing chain expects profitability to be restored by 2018. The company's reorganization plan is designed to shed heavy debts and interest payments so that the company can see some profit in the next three years. Last week American Apparel reached agreements with 95 percent of its secured creditors. If the restructuring plan is approved, control would go almost 100 percent to bondholders, and be taken away from shareholders such as ousted CEO Dov Charney. Story