American Apparel Inc. is seeking advisers to help craft a plan to restructure the company in bankruptcy court, Bloomberg News reported yesterday. The seller of T-shirts and casual-wear has made calls in recent weeks to advisory firms as it prepares to negotiate a bankruptcy loan with creditors to fund it through the process. The Los Angeles-based retailer said last week that it may not be able to continue its operations as a going concern for the next 12 months, even after lenders increased its credit line. A group of lenders, including American Apparel’s largest shareholder Standard General, boosted the credit line to $90 million from $50 million, according to a company statement.
