An 80 Million Dollar Loan. Try Paying That Back.

We’ve all been in American Apparel. Essentially, if you need a basic piece for your wardrobe, you can get it in any color under the sun for way more than you want to pay. But I somehow manage to still spend $26 on colorful leggings and t-shirts for no apparent reason. Even if you aren’t aware of the store, you most likely have an American Apparel item in your closet. Most bands and companies use them to screen print their logos on.

Most people are attracted to the store for it’s simple nature and eclectic vibe. Everytime I’ve been in the store, it’s been packed with people. You’d also think that a place that charges $20 for a v-neck shirt, and it sells, would be doing pretty decent.

Unfortunately, this is yet another case of a store in trouble. On Friday, American Apparel almost filed for Chapter 11 bankruptcy. If they could not come up with $16 million or renegotiate their loan terms, their doors would close. Luckily, CEO/Founder Dov Charney and his team figured it out, and nearly missed their deadline. At midnight, British firm Lion Capital granted them a $80 million loan came their way. Charney used some of his own money to save his beloved company, which already owed $51 million from a previous loan.

After all of this drama passed, their stock raised more than 34%. Perhaps the days of sparkly leggings and oversized, expensive clothes are not over for Charney and American Apparel. Have no fear, the stitch by school downtown is safe. For now. But paying back $81 million dollars? Count me right out.