American Apparel European arm may suffer

As American Apparel may be headed for its second bankruptcy filing, the retailer also has bad news for its European workers.

It has been reported by WWD, that the company's European operations are coming to a stop. The Los Angeles-based retailer has confirmed to the publication that product shipments into the region have stopped since November 5. Because of the impending bankruptcy, it seems that the European arm of the business may be the first to go. The arm includes 30 stores total and has over 400 employees. The locations include many throughout Europe, excluding the U.K.

The company has also confirmed through a letter, which was also obtained by WWD, that business operations may halt as early at November 7. The company is likely to stop various manufacturing operations, wholesale and retail divisions. While it has still not been confirmed, it's likely that the company is headed for bankruptcy. In turn, it seems that buyers such as Iconic Brand Group Inc. and Authentic Brands Group may be interested in purchasing the Los Angeles brand.