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American Apparel to Shutter Stores, Including Oak's LA Shops, By Next January

Oak's first <a href="http://la.racked.com/archives/2014/03/17/oak_nycs_minimalist_and_monochrome_mecca_opens_in_dtla.php">LA outpost</a> in Downtown.
Oak's first LA outpost in Downtown.

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We now know the fate of Oak, the edgy-cool NYC label that American Apparel scooped up two years back. In its latest court filing, the ailing LA-based company hopes to close 13 stores, including Oak's two local locations, reports WWD.

Per the filing, the clothing manufacturer—which filed for bankruptcy last month—is seeking court approval to shutter nine underperforming AA stores and the entire Oak brand, which includes three brick-and-mortar shops and its e-shop. American Apparel notes in the filing that expanding its portfolio "did not result in the hoped for synergies, and the lack of specialized management and oversight...resulted in marked underperformance of the Oak stores."

If the move is approved, Oak's boutiques in DTLA and on Beverly Boulevard are expected to close by January 31st, 2016 or sooner; American Apparel's California closings would include Huntington Beach and Gilroy Outlet. The filing also reveals that AA hopes to take advantage of Black Friday to clear out inventory at those nine underperforming stores, which would close their doors by the end of this year.

OAK

910 S Broadway, Los Angeles, CA 90015

Oak Beverly

7228 Beverly Blvd, Los Angeles, CA 90036, USA