Just two months after filing Chapter 11 bankruptcy, American Apparel is planning to close its very first retail store, which is located in the Echo Park area of Los Angeles. A listing on Loopnet shows rent for the 5,300-square-foot building as negotiable, but also mentions an asking rate of more than $29,000 a month. It is available to lease as early as February.
The decision to shut down the Echo Park location is apparently part of the company’s restructuring strategy. “This store closure is a next step in implementing our previously announced turnaround plan, which includes closing underperforming locations and investing in new stores in promising areas,” the company said in a statement to the Eastsider.
The company has suffered a turbulent year since the ousting of its controversial founder, Dov Charney, who was fired after allegedly sending sexually explicit texts to employees and abusing funds. With its massive debts, various lawsuits and dealings with angry staff, American Apparel was reported to have lost over $340 million in the past five years, with an added $45 million this year alone.
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