Another Bankruptcy For American Apparel?

(RTTNews) - American Apparel Inc. is reportedly preparing to file for its second bankruptcy, just below a year after the clothing maker emerged from bankruptcy.

According to Bloomberg, American Apparel plans to file for bankruptcy as soon as the next few weeks, citing people familiar with the situation, as the company continues struggle with weak sales, heavy losses and a split with controversial founder Dov Charney.

The report indicates that this move from American Apparel could help set the stage for a sale of the company by letting it exit leases and shutter part of the retail operation.

However, the plan may not materialize and could change as the holiday season approaches.