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American Apparel Closes LES Branch After Filing for Bankruptcy Protection

By Lisha Arino | October 27, 2015 2:45pm | Updated on October 27, 2015 7:00pm
 American Apparel closed its Lower East Side outpost at the corner of East Houston and Orchard streets, according to signs on its door.
American Apparel closed its Lower East Side outpost at the corner of East Houston and Orchard streets, according to signs on its door.
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DNAinfo/Lisha Arino

LOWER EAST SIDE — American Apparel’s financial woes have hit the Lower East Side.

The Los Angeles-based retail chain recently shuttered its neighborhood outpost on the corner of East Houston and Orchard streets, weeks after it filed for Chapter 11 bankruptcy protection, Bowery Boogie first reported.

Paper lined the storefront’s windows. Signs posted on its front door read “Sorry, we’re closed” and directed customers to locations in NoHo and SoHo. It was unclear exactly when the Lower East Side outpost, which opened in 2004, closed.

An employee who answered the location's phone declined to comment.

The retailer, known for its risqué ads, has has been saddled with financial trouble, stemming from declining sales, huge debts and litigation involving its ousted founder, Dov Charney, according to reports.

An American Apparel spokeswoman said the closure was part of the company's turnaround plan.

“This store closure is a next step in implementing our previously announced turnaround plan, which includes closing underperforming locations and investing in new stores in promising areas,” she said in a statement.

The building’s management company, S&H Equities Inc., declined to comment.

Other openings and closings in the Lower East Side and East Village include:

► Koneko, the Lower East Side’s newest cat café, has pushed back its opening day to Wednesday, it announced on Facebook, saying that “Opening up the shop has been like herding cats…literally.” The café, located at 26 Clinton St. had originally planned to open Monday.

► Saint’s Alp Teahouse is closing Tuesday after 16 years in business, EV Grieve reported. The Third Avenue teahouse, which has claimed to be one of the first places to serve bubble tea in the city, recently posted a sign announcing its closure, the blog wrote.

► Croissant hot dogs, a foie gras croque monsieur and ramen noodle mac and cheese are just a few of the dishes available at David’s Café, which soft-opened last week at 110 St. Marks Place, according to Bedford + Bowery.

► A pop-up exhibition featuring “Ellis,” a short film by French street artist JR starring Robert DeNiro, opened last week at Galerie Perrotin, located at 130 Orchard St., according to The New York Times. The 14-minute movie, which is set in a formerly abandoned hospital on Ellis Island, will screen at the exhibition Wednesday to Sunday through Nov. 8. The show also includes photos and some works in wood.