After a year of ups and downs American Apparel has filed for bankruptcy protection.

It’s been a storied year for the US basics brand and falling profits have reflected this – the company reported a $19.4m loss in the second quarter of this year, and its New York-listed shares have fallen from more than $2 two years ago to a measly 11 cents last week.

Founded in LA in 1989, the company gained notoriety for its controversial, sexualised advertising campaigns, before a string of misconduct allegations against its founder Dov Charney resulted in his sacking last year, and a drawn-out legal battle followed.

What’s next? An action plan is in place, consisting of an intense restructuring that is hoped will reinvigorate the brand. “By improving our financial footing, we will be able to refocus our business efforts on the execution of our turnaround strategy,” said chief executive Paula Schneider.