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American Apparel Files for Bankruptcy; Here's A Look Back at The Retailer's Struggles

10/05/15 3:38 PM EDT
American Apparel was once one of the hottest clothing companies. But for years, found itself making headlines for all the wrong reasons - and filed for bankruptcy on Monday. Back in May 2006, Founder and CEO Dov Charney was slapped with two sexual harassment lawsuits. Among the allegations: holding job interviews while wearing underwear. Then in December 2006, despite the wave of bad publicity, Endeavor Acquisition Corp. agreed to purchase the retailer for roughly $260 million. But the dark cloud soon returned over American Apparel. In 2010, its AA's auditors, Deloitte & Touche, resigned saying 2009 financial statements may not be reliable, leading to an investigation from the SEC and U.S. Attorney's office. Then in June 2014, American Apparel's board fires Charney following allegations of misconduct. Finally, just two months ago in August, American Apparel warns investors it won't have enough cash to 'sustain operations for the next twelve months.'
Stocks in this video: AAP
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