Clothing retailer American Apparel has filed for US bankruptcy protection, reaching agreements with 95% of its lenders.
The firm, which has seen falling sales of late, recorded a loss of $19.4m (£12.8m) in the second quarter and has announced a restructuring agreement that is designed to cut its debt.
American Apparel chief executive Paula Schneider said: "This restructuring will enable American Apparel to become a stronger, more vibrant company."
The company was founded in 1989 by Dov Charney, who was fired in December over allegations of misconduct. American Apparel was later granted a restraining order against him.
