Los Angeles American Apparel said Monday that is has received a three-month extension from its revolving credit and second lien credit-facility lenders. The amendments require American Apparel to pay the debts on April 20. The original debt was set to mature on Jan. 18.
The new amendments, which include the payment extension and imposes additional legal obligations, enables the company to operate its business according to its plan while continuing discussions with its lenders and other parties regarding longer-term financing. The amendments have been filed with the Securities and Exchange Commission.
The company plans to end 2008 with 80 new stores under its belt, and said it expects to report a double-digit same-store sales increase over 2007.