FTI Consulting Inc., in a motion filed Friday, in bankruptcy court has asked the judge overseeing American Apparel’s case to compel payment of some $2 million in administrative claims that have allegedly gone unpaid since January.
In its motion, the firm alleges no reason has been given for the unpaid bills, claiming American Apparel has fallen out of compliance with its bankruptcy confirmation plan by refusing to pay.
“No dispute or objection exists to such fees; they simply have not paid,” the court documents said.
The filing follows a motion made earlier this week by the litigation trustee in the company’s bankruptcy case, requesting an expedited hearing in a separate matter that requests the payout of $2.5 million to the unsecured creditors committee. That would be in addition to $250,000 to cover the costs of administering those funds. The motion comes as rumors build around the possibility of a second bankruptcy for the troubled company, which saw the October departure of chief executive officer Paula Schneider who was brought in to right-size the business following the controversial ouster of founder Dov Charney. Schneider parted ways with the firm as it seeks to find a buyer for all or part of the business. Last month also saw all of the equipment in its Hawthorne, Calif., dye house, which it had said earlier in the year it planned to close, sold off in an auction.
FTI has asked its matter be added to the Nov. 8 agenda, the same date the trustee’s motion is set to be heard.