Under The Radar: American Apparel Saved From Bankruptcy And Betsey Johnson's Ceo Leaves The Company After 30 Years

American Apparel is more than $91 million in debt and was facing the possibility of closing 280 store within the next few months. Now comes word that a british firm Lion Capital has changed the terms of its lending policy so thatAmerican Apparel won't go bankrupt, reports WWD. According to the terms of the new agreement, American Apparel must make a profit of $20 million over the 12 months ending Jan. 31, and must earn $80 million by September 2013. I don't see this happening, unless they start selling Chanel lol.

Betsey Johnson and CEO of her label, Chantal Bacon, announced her retirement today, but she’s been scaling back her responsibilities at the company since April, when it came to light that the company had defaulted on a $48.8 million loan. This announcement comes just a month after Steve Madden announced it would take over the responsibilities of the loan.


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