American Apparel has no plan to abandon its commitment to U.S.-based manufacturing of its clothing line as part of its turnaround effort, The Wall Street Journal reported yesterday. At the clothing retailer’s debut hearing in its chapter 11 case, its attorney outlined the company’s turnaround plan, which has the support of senior lenders. American Apparel is getting fresh cash to revamp its business, and creditors will get equity in the reorganized company. The turnaround won’t mean widespread closings of American Apparel’s chain of more than 230 stores and will stand by its pledge to produce its clothing line in the U.S. The assurance came in response to remarks from Judge Brendan Linehan Shannon, who will preside over American Apparel’s chapter 11 restructuring. American Apparel returns to bankruptcy court in November for continued action on its turnaround effort.
