Home > Uncategorized > American Apparel Strikes Deal on Factory Lease

American Apparel Strikes Deal on Factory Lease

Dow Jones & Company, Inc.

8/3/15 2:50 PM ET (Dow Jones)Print

14:50 EDT – American Apparel (APP) has reached a deal to bring it back into compliance on the lease of its well-known manufacturing facility in downtown Los Angeles. The company will pay landlord Alameda Square Owner $1.8M, reduced from nearly $3M accrued during 1H 2014, in 11 installments beginning in April 2016. The company will also vacate one of the two 400,000-square-foot factory buildings by March 2016 in exchange for an annual rent reduction of $2.1M. In May, American Apparelsaid the landlord of this facility had alleged breaches under their agreement that “could result in material liability.” The arrangement comes nearly a month after the troubled retailer announced that it’s seeking to save $30M during the next 18 months by closing stores and laying off workers, as uncertainty persists about the company’s liquidity. (stephanie.gleason@wsj.com; @stephgleason)

(END) Dow Jones Newswires

August 03, 2015 14:50 ET (18:50 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.

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