The maker of hip clothing and apparels American Apparels is planning to layoff its 500 workers soon. The company went into bankruptcy restructuring, thus kicking 500 employees from the enterprise. The company sent notifications to its 500 employees about their layoff from the enterprise. There are almost 4,300 employees in Southern California, from which 500 will kick out.
Nativo Lopez, who is the social activist and the union leader of workers at American Apparels said that the Layoff notices were sent to the 500 employees on last Wednesday. There are some employees who still about to receive the notice. Lopez also stated that the layoffs occurred at the American Apparels sites in South Gate and Garden Grove, California.
The Los-Angeles based American apparels were well known for their cozy garments and fashion accessories. Also, the edgy digital and print advertisements were the point of attractions for many of their customers. But, the mistakes made by management led this company into bankruptcy. Now, the company is going through the Bankruptcy Restructuring program, after approved by a judge. In this restructuring, the several hedge funds, and big business like Monarch capital, and Standard General added extra money in the company to ensure smooth restructuring. The above companies will take over the American Apparels after Bankruptcy Restructuring process completes.