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American Apparel’s creditors agreed to provide million in new capital, as well as a million bankruptcy loan to keep the company afloat.

American Apparel in turn pledged to keep its remaining U. stores open for business as court proceedings unfolded.

Founded: 1989 Filed for bankruptcy: 2015 Whether celebrated for its progressive labor practices or criticized for its provocative, racy advertising, American Apparel rarely strays far from the headlines, and its Oct.Hundreds of major corporations have filed for Chapter 11 over the years: Some, like General Motors and United Airlines, survived the process, while others like Lehman Brothers did not.The retail sector presents particularly compelling evidence that Chapter 11 does not necessarily sound the death knell.In August 2008, the company proposed plans to emerge from bankruptcy by reverting to the “everyday low price” approach that vaulted Linens ‘n Things to prominence during its years as a public company, also improving the quality of its merchandise and promising greater attention to store inventory levels.But attempts to find a buyer failed, and in October of that year, the merchant asked for permission to auction its remaining 371 stores and begin going-out-of-business sales.Retail veteran Ronny Shmoel acquired Circuit City’s brand, domains and associated trademarks from Systemax last October. Reports say Shmoel and business partner Albert Liniado plan to open between 50 and 100 new Circuit City stores this year, as well as a new e-commerce site.