American Apparel Eyes Ch. 11 Amid Deep Losses

Law360, New York (April 1, 2011, 3:26 PM EDT) -- Troubled clothing maker American Apparel Inc. may seek Chapter 11 protection if it cannot recover from steep losses in 2010, the Los Angeles-based company said Thursday in a U.S. Securities and Exchange Commission filing.

The clothier — which is facing several lawsuits, including one accusing its founder of turning a teenage employee into his sex slave — expects poor sales and low cash flow to continue in 2011, and it might not be able to continue normal business operations because of possible liquidity problems, it said...
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