American Apparel re-emerges as private company

American Apparel has emerged from Chapter 11 bankruptcy as a private company after successfully implementing a reorganization plan. The company is now known as American Apparel, LLC.

In January, a U.S. Bankruptcy Court judge approved the company's reorganization plan to repay creditors. It's the plan put forth by CEO Paula Schneider—not ousted founder Dov Charney, whose $200 million offer to take over the company he founded in 1998 was rejected.

The new plan converted $230 million of bonds into equity and provided for the infusion into the company of $40 million of exit capital and a commitment for a $40 million asset-backed loan. The cash will support the company's turnaround plan, and interest expense will decrease by $20 million.

"I'm pleased to announce that our plan of reorganization, which was supported by our unsecured creditors' committee and our bondholders, unanimously accepted by our voting creditors and confirmed by the court, has now enabled us to emerge from bankruptcy in just a few short months," said Schneider. "This is the start of a new day at American Apparel."

With its debt removed, American Apparel will now focus on a turnaround plan to benefit customers, vendors and employees. Schneider says the focus will be on designing fresh products; launching new partnerships to grow e-commerce; unveiling progressive advertising and marketing campaigns; investing in brick-and-mortar stores; and implementing rigorous planning and forecasting for timely product deliveries and to streamline excess inventory.

For more:
-See this American Apparel press release

Related stories:
Dov Charney loses American Apparel
Ousted Charney bids $200M for bankrupt American Apparel
American Apparel sues former CEO Charney
American Apparel files for bankruptcy, wipes out Charney
American Apparel closing more stores

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