American Apparel Fashion Valley

LOS ANGELES — American Apparel isn’t taking a chance.

The Los Angeles-based company, that has been on a whirlwind ride to shuttle itself through bankruptcy procedures, asked a judge to extend its exclusivity duration for processing a reorganization plan in a move that seeks to prevent what other techniques from being filed.

United states Apparel submitted for personal bankruptcy in October and since then obtained $90 million in debtor-in-possession financing, shuttered underperforming stores and hit an agreement earlier on this month to market Oak NYC back again to its initial owners, all while attempting to operate and change a struggling company.

The organization’s debate the extension is numerous plans would probably only boost prices and “quite likely impede — without facilitate — meaningful development” toward the business’s exit from personal bankruptcy, American Apparel said in court papers.

The present exclusivity period ends Feb. 2, although the business stated in its filing chances are to own emerged from personal bankruptcy before that day. The extension is being requested in “an abundance of care” the business stated in its courtroom filing. A hearing on its program has-been set for Jan. 20.

At the least two teams had earlier on this thirty days been thought to have performed non-disclosure agreements with United states Apparel.

At the same time, the merchant will continue to restructure its businesses getting back on the right track. A week ago American Apparel asked the bankruptcy court judge for permission to shut eight extra stores inside U.S.

1 / 2 of the stores to be closed have been in California and include its Echo Park door on Sunset Boulevard, third Street Promenade shop in Santa Monica; Fashion Valley Mall in hillcrest, and another in Santa Clara. The residual stores are in Norwalk, Conn.; Jersey City in the Newport Mall; Bridgeport Village in Tigard, Ore.; and Madison, Wis.

The shops are anticipated to shut Jan. 30, relating to documents.

The store closures follow a request the company produced in late October into the bankruptcy courtroom to approve the closing of nine United states Apparel shops and four stores operating under the Oak New York brand name.

United states Apparel “decided to close eight extra underperforming stores that don't fit inside their recovery business strategy, ” the organization said in its movement recorded the other day. It cited an inability to negotiate an “acceptable rent expansion, ” large rents or an inability to turnaround sales slumps in November and early December as good reasons for the excess closures.