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American Apparel Asks Bankruptcy Court to Approve Staff Bonuses

Submitted by jhartgen@abi.org on

American Apparel is hoping to give its employees a boost, proposing bonuses to stem a staff exodus as well as funding for the defense of its top executives against lawsuits brought by shareholders and its former chief executive, the Wall Street Journal reported on Saturday. The beleaguered seller of made-in-the-U.S. clothing said in court papers filed on Friday that the bankruptcy has hit its workforce hard; it has lost 30 corporate employees and 6 percent of its retail staff since it filed for chapter 11 protection less than a month ago. American Apparel says it is sticking to its plan to keep open a large number of its stores during its bankruptcy restructuring. It operates more than 200 around the world.