Wait a second before you buy that American Apparel dress — the U.S. manufacturing company has officially filed for bankruptcy today after struggling with decreased sales and rising debt for the past few years.
But don’t be too quick to say goodbye to those shiny skater dresses and outrageous leotards. Just because the company is going under doesn’t mean it’s shutting its doors. The bankruptcy plan is restructuring the company to keep their 130 U.S. stores open. The plan still needs to be approved, but for now, shoppers are still in the clear.
American Apparel is just one of the many fashion companies that have been struggling to keep up with popular brands like H&M and Forever 21 that are known for their inexpensive and fashionable clothing.
Now that American Apparel has filed for bankruptcy, the question is, "Who’s next?" Abercrombie & Fitch and Aeropostale have struggled to appeal to the Millennial market as well. Bottom line, American Apparel is definitely not doing a great job at making sales, but don’t let that deter you from shopping there. Now that the company is going under, maybe we’ll see some awesome sale prices out of this whole situation.