clock menu more-arrow no yes

Filed under:

American Apparel Deathwatch Off, For Now

New, 2 comments

Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.

American Apparel not dead yet: Lion Capital, their primary lender, is working with them on their loan terms to keep them out of default. Specifically, Lion has agreed to waive "?the requirement that American Apparel maintain a certain level of profitability in order to continue receiving credit." Which sounds EXACTLY like what happened with the whole mortgage crisis thing, and look at how that turned out. Lion's leniency is far from a silver bullet: American Apparel still has a buttload of mountains to move, including getting back on the SEC's good side, figuring out their immigrant workforce issues, smoothing out the accounting scandal, and least, but certainly not least?making and selling clothes that people want again. [Jezebel]