It's not looking good for one of our favourite brands!

This morning, US brand American Apparel filed for Chapter 11 bankruptcy. 

It's not the end of AA, but it is a notable point in the continued downward slide of the once edgy brand that has lost over €342m over the last five years. 

According to the filing, the brand has converted nearly €200m worth of bonds its creditors held in the company into shares, giving those lenders full control of AA.

This move allows the brand to properly operate but it will only be able to ship 10 percent of its new A/W line to shops due to financial shortages. 

In a happy note, both factory and retail workers will keep their jobs. And along with many optimistic statements this morning, AA's corporate leadership expressed their commitment to keeping its manufacturing in the US. 

In terms of legacy, the filing and restructuring reduces questionable founder Dov Charney's once-considerable stake in the company to almost nothing. So, despite Dov's many attempts to regain control of the brand he established in 1989, it looks like he is now out for good. 

American Apparel continues to have potential and while the company predicts six months for its restructuring to be complete, we hope it goes back to a store we love to shop in like before.