American Apparel Inc. is poised to exit bankruptcy proceedings without mercurial founder Dov Charney — but with a commitment to U.S. manufacturing.
A U.S. Bankruptcy Court judge Monday approved the Los Angeles clothier's plan to reorganize and repay its creditors, officially ending the Charney's reign by rendering his large ownership stake worthless.
American Apparel will instead be taken private, with control going to its largest bondholders probably within 10 days. Chief Executive Paula Schneider said the company will push ahead with its turnaround plan to cut costs and refocus design efforts while preserving its U.S. manufacturing operations.
Reached by phone...