After losing money for six consecutive years, American Apparel filed for Chapter 11 bankruptcy in the U.S. on October 5, 2015 in the United States Bankruptcy Court for the Central District of California. It was reported that the brand then agreed to a plan with its creditors to convert $200 million of debt into equity, $90 million in debtor financing and $70 million in new capital. The company officially exited bankruptcy after its financial restructuring plan was accepted by the Bankruptcy Court in Delaware and became privately owned by its creditors and bond holders, thus severing ties with all former stockholders as well as ex-CEO and founder Dov Charney. In January 2017, Gildan Activewear purchased American Apparel's intellectual property and other assets for $88 million in a bankruptcy auction after the company filed for bankruptcy a second time in November 2016.