Bankruptcy Judge Brendan Shannon yesterday said that he would approve American Apparel Inc.’s plan to exit bankruptcy and rejected a takeover attempt from the teen retailer's founder and ousted chief executive, Dov Charney, Reuters reported yesterday. The ruling by Judge Shannon clears the way for hedge funds including Monarch Alternative Capital to control the operator of more than 200 stores when it exits chapter 11. Los Angeles-based American Apparel Inc., known for its "Made in the U.S.A." fashion and sexually charged advertising, filed for bankruptcy in October, blaming changing tastes and too much debt. The reorganization plan that Judge Shannon approved would cut more than $200 million of debt and provide a cash boost. Under that plan, the company expects to be profitable in 2018, which would be the first time since 2009.
