Clothing giants American Apparel have filed for bankruptcy a second time in a year after filing back in October 2015. The announcement comes after the retailer went in to administration in the UK.

Written by: Grace Brown | Sub-editor: Jessica Penfold

The news comes after it was reported sales of clothing had fallen. At it’s peak, American Apparel had 200 stores, 18 of which were in the UK. The company are now planning to auction off their business with Canadian t-shirt business Gildan Active leading the bids at $66 million for intellectual rights and certain assets, but not physical stores.

UK stores are still going to be selling stock in the lead up to Christmas, but are likely to be wound down after as it’s UK branches are not under the US sales.

Dov Charney founded the company in 1989 and prided himself on his ethically produced clothing in the USA, yet has not been able to stop the falling sales since 2010, American Apparel have struggled since the departure of Charney in 2014.

Over the years the brand have come under fire several times with the Advertising Standards Authority over its controversial advertising campaigns which are often met with claims of objectifying women and being overtly sexual.