LOS ANGELES (CBSLA.com) — A day after filing for Chapter 11 bankruptcy protection, Los Angeles-based American Apparel announced Tuesday that the New York Stock Exchange is suspending trading in the company’s stock immediately and beginning the process of delisting its common stock.
American Apparel said it has received a notice from the NYSE informing it that the exchange determined that “the company is no longer suitable for listing…”READ MORE: Police Identify Homeless Man Arrested In Palisades Fire
The pre-dawn announcement by American Apparel comes one day after the company filed notice in U.S. Bankruptcy Court in Delaware to re-organize under Chapter 11.
The NYSE notice states that in reaching the delisting determination, the exchange “noted the uncertainty as to the timing and outcome of the bankruptcy process, as well as the ultimate effect of this process on the value of the company’s common stock,” said the company statement, adding that American Apparel “does not intend to appeal the delisting determination.”READ MORE: Sole Folks: One-Of-A-Kind Leimert Park Cooperative Provides Home, Platform For Talented Black Artists
American Apparel said Monday it was filing for bankruptcy after reaching a deal with 95 percent of its secured lenders. The restructuring agreement will take the company private and hand nearly 100 percent control to its largest bondholders.
Among the shareholders who will be forced out by bankruptcy proceedings will be founder Dov Charney, who was ousted last year as chief executive and chairman amid allegations of inappropriate behavior involving employees and financial misconduct.MORE NEWS: LAPD Investigating Sexual Abuse Allegations Against Rapper T.I., Wife
(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)