The controversial fashion line American Apparel Inc. filed for bankruptcy with the US courts today, struggling to keep its cool persona while juggling lawsuits and mounting debt.

The company was founded in 1989 by Mr. Dov Charney, while he was a student at Tufts University. The sexually provocative advertising campaigns, skin-tight clothing, and retro designs helped make the company popular among teens and young people. American Apparel has built up its reputation as a brand by defying many social norms.

American Apparel, one of the few clothing retailers still manufacturing in the United States, said its stores and manufacturing operations would continue to operate normally under a restructuring deal reached with most secured lenders.