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Clothing retailer American Apparel has filed for bankruptcy. The Los Angeles-based company, which is usually in the news for its banned adverts now faces a different problem.

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American Apparel has already recorded of $19.4m (£12.8m) in its second quarter. The new file for bankruptcy will help the failing company restructure its business model. Chief executive Paula Schneider said: “This restructuring will enable American Apparel to become a stronger, more vibrant company.”

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American Apparel has 260 shops and concessions in 19 countries, which includes 18 stores on the UK. The brand which has managed to keep its cool ethos over the years, with clothing made in in America rather than sweat shops and adverts that can either make you laugh, cringe or feel revolted, says the restructure could take about six months to complete.

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American Apparel recently fired its founder Dov Charney admit a string of sexual harassment lawsuits from its employees. At present it is unclear whether the bankruptcy filing will affect the UK stores.

Related: 93 images of American Apparel’s sexiest and most controversial adverts EVER!!!