At the end of last month, the three hedge funds made a lot of trouble.

The bankruptcy reorganization hearing has been passed recently.

Some major changes are about to begin.

According to the three quarter results released by AA, the sales of AA continued to decline in the first three months to September 30, 2015, while the net sales were only 126 million US dollars, a decrease of 19.1% compared with 155 million 900 thousand US dollars in the same period of the previous year, a doubling of operating losses to 20 million 266 thousand US dollars, and a net loss of 25 million 560 thousand US dollars, a further increase compared with the 19 million 184 thousand US dollars in the same period of the previous year.

According to this estimate, the AA2015 fiscal year will still record a huge amount of $75 million 960 thousand.

To achieve profitability, there is no hope of recovery until at least 2018.

The group's chief executive said that after the huge debt reduction, the group will focus its attention on strategic change, and at the same time, it will achieve profit from the design and development of new products, expansion of e-commerce business and expansion of physical stores.

But what is the way forward? Wait and see! In the current retail environment, such a difficult situation, AA has to face enormous pressure.

American Apparel, which filed for bankruptcy protection in October 2015 and passed the bankruptcy reorganization plan at the end of January 2016, is now out of bankruptcy protection. At the same time, it also means that the company will be delisted into a Private Companies.

Although the Dov Charney, the very hot founder, pulled the two largest hedge funds to try to return to AA, but with the top vote of the largest creditor and the board of directors, AA decided to convert the $230 million debt into equity, and the Monarch Alternative Capital LP, Standard General LP, the General and the control of the debenture holders, and so on, will get a total of 80 million dollars in loans and financing, and the shares of the company and other shareholders will disappear with this action. The benefit of the bankruptcy reorganization plan is to reduce the interest expense of the company by 20 million dollars.