American Apparel Dodges Bankruptcy

“American Apparel has secured rescue financing that will inject as much as $43 million into the cash-strapped clothing chain in the coming months, helping it avert the threat of Chapter 11 bankruptcy, sources told The Post.

After days of tortured deliberations, the retailer’s board has approved a financing package from a group of Canadian investors that will immediately pump $15 million into American Apparel’s operations in exchange for common stock priced at 90 cents a share, according to sources close to the situation.

That’s a discount of more than 27 percent to the company’s closing share price yesterday of $1.24. ”

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