American Apparel, the highly controversial, sweatshop free, teen clothing store filed for bankruptcy protection today. The company, founded by ex-CEO Dov Charney has apparently been struggling financially since 2009. A potential source of the business’ losses can well be attributed to the controversies the company has caused. Known for its incredibly sexual and degrading advertisements, American Apparel was put on the spot a few years back after news that Charney was fired after many accusations of sexual harassment.
The company owes more than $500 million dollars while only worth $200 million. Standard General, American Apparel’s largest shareholder is currently still holding on to Charney’s 43% in the company. Whether or not the company will still be afloat this time next year is still up in the air.