Encina $30mm Dip Facility to American Apparel Approved By Court

Witness the roller coaster ride of the American Apparel bankruptcy through the lens of ABF Journal illustrator Jerry Gonzalez.

The American Apparel Show: A Rollercoaster Ride Through Bankruptcy and Back Again

American Apparel isn’t the only youth-oriented retailer that sought Chapter 11 protection in 2016, but its story is the most dramatic. Its first bankruptcy proceedings included a failed battle by ousted Founder and CEO Dov Charney to regain control. Six months after exiting Chapter 11, the company was back in bankruptcy with $30 million DIP financing from Encina Business Capital and a $66 million stalking horse bid from Canadian underwear manufacturer, Gildan. Is this American Apparel’s last stand?

Gildan Buys American Apparel for $88MM

Bloomberg reported that stalking horse bidder Gildan Activewear increased its bid to $88 million to purchase American Apparel at auction.

Encina $30MM DIP Facility to American Apparel Approved by Court

Encina Business Credit provided a $30 million DIP facility to American Apparel. The financing, which has been approved by the bankruptcy court, will be used for working capital as the company operates under Chapter 11.

American Apparel Files Chapter 11, Seeks Approval of $30MM Encina DIP

American Apparel filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, seeking approval of a proposed $30 million revolving DIP credit facility agented by Encina Business Credit.

American Apparel Plan Confirmed by Court; Lenders Become Owners

American Apparel’s plan of reorganization has been confirmed by the Court. The company’s transformation strategy to revitalize the brand remains the key focus.

American Apparel Files Chapter 11, Lenders to Provide $90MM DIP

American Apparel reached a restructuring support agreement with 95% of its secured lenders to implement a pre-arranged financial restructuring. The company said its secured lenders will provide $90 million in DIP financing.

American Apparel Replaces Capital One as ABL Agent

American Apparel secured a $90 million asset-based revolver with Wilmington Trust as agent for a lender group replacing Capital One Business Credit. The company noted “substantial doubt that it would be able to continue as a going concern.”

American Apparel May Face Compliance Issues with Capital One

Bloomberg reported that American Apparel posted a wider Q2 loss in a preliminary earnings statement and may not be in compliance with certain provisions of its revolver with Capital One Financial.

Six Brands That May Not Make It Through 2015

Inc. released its list of six brands that may not make it through 2015. Included in the list is RadioShack, American Apparel and Sears Holdings.