Retailer American Apparel Enters Chapter 11

American Apparel Inc. filed for chapter 11 protection Monday amid shrinking sales and litigation tied to founder Dov Charney, who left the company last December, The Wall Street Journal reports.

(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”)

Relativity Media LLC founder Ryan Kavanaugh made a deal to, along with other investors, retake control of the embattled film studio. Read the Daily Bankruptcy Review article via WSJ.

DBR reports via WSJ that the bankruptcy plan of Freedom Industries Inc., whose West Virginia plant had a massive chemical spill that contaminated the water of 300,000 people, is close to winning a judge’s approval.

Presidential candidate Hillary Clinton says Patriot Coal Corp’s bankruptcy plan is “outrageous and must be stopped,” Reuters reports.

WSJ reports on the big pension problem faced by Connecticut, the state with the richest population, and a state senator said he worried Connecticut could “end up as another Detroit.”

Write to Melanie Cohen at [email protected]. Follow her on Twitter at @MelanieLisa