American ApparelWell, you can’t blame American Apparel for failing to tell it like it is.

The clothing company in August said it had “substantial doubt” that it would stay in business. The prognosis was confirmed Monday, when American Apparel filed for Chapter 11 bankruptcy protection.

The move comes amid declining sales, which fell 17 percent in the second quarter.

"The decline in comparable sales was attributable to the lack of new style introduction for the spring and summer selling season," the company said, in a press release, at the time.

Investors have lost confidence altogether: American Apparel’s stock has dropped to penny stock amid the company’s financial problems.

Now the company, whose brand was built on sex and salaciousness, is trying to mop up the mess.

As the Ch. 11 process plays out, American Apparel will need to communicate with Wall Street, consumers and business partners every step of the way.

The next few months will be crucial, as American Apparel emerges from bankruptcy and rebrands itself. A long-term media relations strategy—not to mention providing adequate media training for the company’s new regime—should be of paramount importance.

Indeed, when you file for bankruptcy, the onus is on the company to over-communicate with constituents and other stakeholders.

Paula Schneider, who late last year succeeded disgraced CEO Dov Charney, has been making some media rounds.

Last summer she told CNNMoney, for example, that it will take a while to get the company back in the black and right the ship.

“Change is hard and I think there’s some people who still would prefer the old, but the old way is not the new way,” Schneider said. “If we don’t change it dramatically there’s not a turnaround to be had around here.”

Schneider added that the company would be “an inclusive brand that is sexy.”