Troubled apparel retailer heading toward bankruptcy—again

American Apparel Inc. reportedly is preparing to file for its second bankruptcy just nine months after it emerged from its first one.



According to Bloomberg, the beleaguered retailer, whose sales continue to slide, could file as early as in the next few weeks.



American Apparel filed Chapter 11 in October 2015. It emerged in February 2016, with new owners led by Monarch Alternative Capital and an ambitious plan led spearheaded by CEO Paula Schneider. She abruptly left the chain a few weeks ago, amid rumors it was exploring a sale of all or parts of the business.



Schneider was replaced by American Apparel general counsel and chief administrative officer Chelsea Grayson.



The past few years have been full of drama for American Apparel. The controversial Dov Charney, the company’s founder and longtime CEO, was fired in 2014 over allegations of misconduct. He fought unsuccessfully to regain control of the business and has embroiled the chain in a number of lawsuits.



American Apparel operates approximately 200 stores. The company's turnaround has reportedly not been fast enough, according to Bloomberg.