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American Apparel

An ongoing battle with founder Dov Charney and a steady erosion of sales proved too much for American Apparel, which filed for Chapter 11 reorganization in October.

The move came less than two weeks after the retailer received a notice from the New York Stock Exchange, which said its was no longer in compliance with listing requirements due to its weak financials.

CEO Paula Schneider, who has been attempting to turn around the company by eliminating its raunchy ads, cutting costs and updating its merchandise, said, "This restructuring will enable American Apparel to become a stronger, more vibrant company."

American Apparel said the reorganization will reduce its debt from $300 million to no more than $135 million, and annual interest expense will decrease by $20 million.

Adam Jeffery | CNBC