Less than 9 months after emerging from Chapter 11 proceedings, American Apparel is allegedly preparing for another bankruptcy filing after turnaround efforts by the previous plan of reorganization sponsors, including Standard General, Monarch Alternative Capital, Goldman Sachs Asset Management and Pentwater Capital, have apparently failed. While details are sparse given that the company is now privately held, a note from Bloomberg suggests that the company may be preparing a sale that would have to be implemented through a bankruptcy proceeding to allow new owners to shed leases and other liabilities associated with unprofitable stores.

American Apparel Inc. is preparing for its second bankruptcy filing in as many years, according to people familiar with the situation, capping a tumultuous stretch that included tumbling sales, red ink and a split with controversial founder Dov Charney. The filing may come as soon as the next few weeks, according to the people, who asked not to be identified because the discussions aren’t public. The move could help set the stage for a sale of the Los Angeles-based company by letting it exit leases and shutter part of the retail operation, according to the people. Still, the plan isn’t yet final and could change as the holiday season approaches. The clothing maker only emerged from bankruptcy in February, when former bondholders -- led by Monarch Alternative Capital -- took over the company. A turnaround plan to return to American Apparel’s roots and focus on basic items like T-shirts and skirts didn’t improve results enough, according to the people. The company also has hired restructuring firm Berkeley Research Group for guidance, the people said. American Apparel hired investment bank Houlihan Lokey earlier this year to consider a sale after receiving interest, according to the people. The potential buyers are mainly interested in the company’s wholesale unit and the brand, they said. That leaves its roughly 200 retail stores in limbo.

Of course, American Apparel just emerged from a pre-arranged bankruptcy filing back in February with CEO Paula Schneider promising renewed financial strength via new products and revamped stores.

“By improving our financial footing, we will be able to refocus our business efforts on the execution of our turnaround strategy,” Chief Executive Officer Paula Schneider said in the statement. The company plans to create new products, introduce new design initiatives, invest in new stores and expand its e-commerce business, she said.

That said, given rumors of a new bankruptcy filing, we're guessing that Moelis was "slightly" off in their financial projections filed in a Disclosure Statement with the court back in November 2015. Frankly, we're shocked as it seems like a pretty "reasonable" forecast...no hockey stick there...though we're not sure we would have been very excited about attesting to the "feasibility" of a plan tied to this particular projection.

And, like with many failed retail businesses, we suspect that the following liquidation analysis presented in the last disclosure statement now becomes the "upside" scenario for Monarch and Goldman.