Printwear

November '15

For the Business of Apparel Decorating

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BUSINESS WATCH 12 || P R I N T W E A R N O V E M B E R 2 0 1 5 American Apparel Files for Chapter 11 LOS ANGELES—American Apparel announced on Oct. 5 that it filed for Chapter 11 bankruptcy protection, in order to relieve itself of debt and continue its operations with- out interruption. Under terms of the filing, the company will reduce debt and interest payments by more than $200 million in exchange for secured lenders acquiring equity interests in the form of bonds in the reorganized company. The company says its retail stores, wholesale, and U.S. manufacturing operations will continue to operate as normal throughout the re- structuring, which is expected to take about six months. "This restructuring will enable American Apparel to become a stronger, more vibrant company," says CEO Paula Schneider in a company-issued statement. "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." Schneider is a fashion industry veteran who was brought in by American Apparel's board of directors following the ouster of the company's controversial founder, Dov Charney. "This process will ultimately benefit our employees, suppliers, customers, and valued partners," Schneider says in the statement. "American Apparel is not only an iconic cloth- ing brand but also the largest apparel manufacturer in North America, and we are taking this step to keep jobs in the U.S.A. and preserve the ideals for which the company stands. In partnership with our bondholders, we can work towards a new future for the company and concentrate on what matters: making and selling great clothing." On the same day the bankruptcy was announced, the company also said the New York Stock Exchange had notified it that it was suspending the trading of its common stock and had begun proceedings to delist the stock from the exchange. As the company stated in its bankruptcy filing, if the bankruptcy court agrees to the restructuring agreement the company has forged with some of its creditors, American Apparel's common stock will become worthless and holders of the stock will receive no compensation. Industry Updates continued from page 10 ST. CLAIRE SHORES, Mich.—STAHLS' releases a video on customizing classic varsity jackets with special-effect heat printing. The video shows how new jacket styles make it easy to create updated looks and expand sales opportunities using specialty transfer materials like metallic and glitters and heat press. Visit http://bit.ly/1LLOeUu for details. MASONTOWN, Penn.—Imprintables Warehouse's new video showcases a new tech- nique using SPECTRA Perform Clear printable heat transfer vinyl in a cut-only appli- cation to create special effects for lettering. The demo shows how to create two different color images in CADworksLive, cut the two materials using VectorCUT, and finally how to apply them to a Myogrid performancewear garment. To see the video, go to https:// www.youtube.com/watch?v=BPeLl-KJkkE. Air Waves Doubling Production Capacity at Ohio Headquarters LEWIS CENTER, Ohio—Air Waves Inc. has sold off its heat transfer division to F&M Expressions. Last year, the com- pany sold off its digital transfer paper di- vision to Joto Paper Inc. Both moves, according to chief operat- ing officer Michael Leaventon, were made so that the company could focus more on its core business: on-demand garment printing and order fulfillment. "It's to focus more on our e-commerce fulfillment business," Leaventon says of shedding the two divisions. "Order- ing garments online (from whatever source)—that's not going away. And we just found that we were in a lot of differ- ent businesses." The company's e-commerce fulfillment business is growing to the point where this fall, it is relocating to another facility in Lewis Center that is more than double the size of its current location. The com- pany says the extra space is needed to add capacity and maintain its fast turnaround time. Air Waves handles direct-to-garment, screen printing, and sublimation for a variety of garment websites, retailers, and major online marketplaces. "If you go online on their website and you order a T-shirt, they're just running the store, we're running the warehouse and production. We send it to their customer," Leaventon says. "Our value proposition to customers is that no matter what platform they're on, they carry no inventory and everything's printed and shipped on de- mand, within 24 to 48 hours. Air Waves currently employs about 85 people. The expansion is likely to lead to the creation of additional jobs, although Leaventon would not specify how many or speculate on the timing of those new jobs.

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