It’s not cheap being broke.
American Apparel Inc., which is still spending more than it brings in, is getting lots of help as it navigates Chapter 11. A court filing this week detailed the company’s operating forecast and listed retainers totaling more than $1.7 million for various professional services.
The retainers could be adjusted once the company’s pre-petition invoice is completed, but the first look includes:
* $350,000 for legal council from Jones Day
* $315,000 for the bondholders’ financial advisor Ducera Partners
* $261,445 for the services of investment bank Moelis & Co.
* $250,000 for financial guidance from FTI Consulting Inc.
* $150,000 for public relations firm Weber Shandwick Worldwide
* $200,000 for bondholders’ counsel Milbank, Tweed, Hadley & McCloy
For instance, the company expected a total of $7.1 million to come in during the week labeled Oct. 9, including $2.9 million from U.S. stores, $3.3 million from U.S. wholesale operations, $651,000 from online operations and $371,000 from the international business.
But the firm expected to spend about $437,000 more than it brought in over the week, putting $2 million into payroll, paying $2.2 million to vendors and so on.
Over the six weeks, American Apparel expects to bleed $8 million in cash, math that works because the company had also planned to draw down $10 million from the debtor in possession financing it secured as part of the bankruptcy process.