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American Apparel has been in the middle of a turnaround effort that includes store closings and some layoffs. The company also faces several lawsuits from ousted CEO Dov Charney. Now they face the bankruptcy court.

1. What were the allegations against previous CEO Charney and what types of financial strains has this put on the company?
2. Who is the new CEO and why is she seen as providing a needed role in the turnaround?
3. What is the deal before the bankruptcy court to help the company relieve some of its massive debt?

Bashin, K. (2015). Bankruptcy buys it time, but not much else. Bloomberg News, Oct. 5 (Retrievable online at

Garcia, Tonya (2015). 5 reasons American Apparel is now bankrupt, Oct. 5 (Retrievable online at