American Apparel’s ‘SoHo Factory Outlet’ Space is up for Grabs
This image has been archived or removed.
It’s a rough week for American Apparel.
The once-controversial, “Made-in-Downtown LA” clothing company filed for Chapter 11 bankruptcy on Monday morning. This bankruptcy protection deal reached enables American Apparel to both keep manufacturing in Los Angeles and its 130 stateside stores open.
Here in the city, however, American Apparel had already given up on its 73rd Street store. Downtown, closer to home, another casualty.
Brokers from RKF placed a leasing sign in the window of 285 Lafayette Street within the last few days. That would be the address of the three-year-old American Apparel “SoHo Factory Outlet.” It’s a 6,900 square-foot through-block space on the ground floor. Immediate possession; no price given.
More about the bankruptcy, per the New York Times:
The Chapter 11 petition, approved by the board, was filed in federal bankruptcy court in Delaware. The filing followed a deal struck with most of American Apparel’s secured lenders to reduce the retailer’s debt through a process known as a debt-for-equity conversion, where bondholders swap their debt for shares in the company.
No layoffs were announced in the filing, which still requires approval by the bankruptcy court. The retailer’s overseas operations are unaffected by the restructuring, which American Apparel expects to complete within six months.
Still, the bankruptcy would wipe out American Apparel’s current shareholders, including Mr. Charney, whose stake in the retailer, which he founded in 1989, was worth about $8.2 million as of Friday. It would instead put the company’s creditors in full control, including Standard General, the little-known hedge fund that is also leading the turnaround at RadioShack, which went bankrupt in February.