Nearly 150 staff at American Apparel, including seven at its store in Leeds, are facing a nightmare before Christmas after the US fashion chain’s administrators pulled down the shutters on 12 UK branches.
A total of 147 employees have been made redundant, with only the Camden High Street store remaining open.
American Apparel stores in London’s Carnaby Street, Covent Garden and Oxford Street will all cease trading as 12 out the companies’ 13 UK outlets are closed.
The firm plunged into administration in November after falling foul of tough trading conditions in Britain and America.
Jim Tucker, joint administrator and restructuring partner at KPMG, said: “Over the last seven weeks, we have carried out our intention to trade all of the stores on a short-term basis in order to sell the stock and realise value for the creditors.
“The Camden store will remain open into January.”
The remaining 31 members of staff based in Camden and at the firm’s head office will be retained in the short term, KPMG said.
The announcement comes after American Apparel filed for US bankruptcy protection for the second time in a year in November.
The company flagged up problems with its finances as long ago as August 2015, saying it might not have enough cash to keep the firm going as losses widened.