American Apparel to File Bankruptcy

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In a long-expected move, downtown L.A.’s American Apparel Inc. said it plans to file for Chapter 11 bankruptcy today after reaching a restructuring deal with 95 percent of its secured lenders, the Los Angeles Times reports. Lots of old shares, including the stake held by founder Dov Charney, will be wiped out. The filing will substantially lighten the apparel maker’s heavy debt.

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