American Apparel File For Bankruptcy

Retail clothing giant American Apparel has filed for bankruptcy after falling $311 million into debt.

RELATED: American Apparel Ad Banned In The Uk

The company also cited sales declines, employee dissatisfaction and past and present lawsuits as alternative reasons for the action.

The edgy clothing chain, which is known just as much for its controversial ads and campaigns as it is for its merchandise, made the announcement on its website, claiming a deal with deal with lenders to reduce the debt may cause it from going under.

RELATED: American Apparel's 62-Year-Old Lingerie Model

Chief Executive Officer Paula Schneider said all 9000 employees will keep their jobs and there will be no redundancies or closures in the 19 countries it operates in.

“By improving our financial footing, we will be able to refocus our business efforts on the execution of our turnaround strategy as we look to create new and relevant products, launch new design and merchandising initiatives, invest in new stores, grow our e-commerce business, and create captivating new marketing campaigns that will help drive our business forward,” Ms Schneider said.

The company, which was started in 1989, has become known in the fashion industry for it's hyper-sexualized adverts and niche audience.