American fashion company American Apparel hopes its bankruptcy can be the start of a bright future: the company hopes to be profitable by 2018, which would be the first time since 2009.
The chain is even looking for a 23.7 million dollar (20 million euro) net profit in 2020, which would even trump its record year, 2007. It is looking at the future with the continuous problems with its founder and former CEO Dov Charney in mind. He still wants a sizeable compensation, which could negatively effect American Apparel's results.
The company also wants to continue the relations with its current suppliers and rental partners. The reason to file for bankruptcy is not to cancel the current deals with those parties, but to alleviate the pressure of its high interest rates.
Prior to the bankruptcy, American Apparel had a 145 million dollar (130 million euro) debt, while the debtors will now only get 1 million dollars (900,000 euro) in total, to divide among them all.