American Apparel just filed for its second bankruptcy and closed its Australian online store


It’s Groundhog Day for American Apparel and bad news for Australians.

The U.S. retailer has filed for bankruptcy for the second time in just over a year and closed its Australian online store.

A farewell message is displayed prominently on the website.

“American Apparel will no longer maintain an online presence in Australia. We would like to express our gratitude for your business.”

Considering the retailer’s challenging past 24 months, it’s not all that surprising.

After a controversial split from former founder and CEO Dov Charney in 2014, it filed its first bankruptcy in October 2015.

As sales continued to plummet this year, CEO Paula Schneider resigned in September, a signal of things to come.

According to reports, Canadian activewear company Gildan will buy IP rights, wholesale inventory and manufacturing and distribution assets for $66 million.

It won’t be purchasing any retail store assets, so the future of American Apparel brick-and-mortar stores remains uncertain.

It’s a small dent in American Apparel’s $215 million debt, but it’s something.

For Australians, this might just be the end of American Apparel.

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