Dive Brief:

• American Apparel’s recent stock dive was just the latest bump in the road for the struggling retailer, which is saddled with $240 million in debt and has toyed with bankruptcy in recent years.

• The Los Angeles-based apparel maker and retailer hired the law firm Skadden, Arps, Slate, Meagher & Flom LLP to work on restructuring.

• The retailer, famous for its outrageous CEO and founder Dov Charney and bold, sometimes controversial marketing and window treatments, is also known for making its clothing in the United States. 

Dive Insight:

Like many clothing retailers, American Apparel has been struggling, especially over the holiday shopping season and into January’s deep freeze. But its financial problems predate the holidays, and weren’t solved by holiday sales. There’s no hint about what kind of restructuring strategy might be afoot, but hopefully it will avoid shipping jobs overseas. While Charney has flirted with disaster in relation to his attitudes toward women, marketing images, and other high-profile controversies, the clothes have been popular, decently made, and well priced. Made in the USA, these garments are some of the few that can be called true American apparel. Let's hope they can stay that way.