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American Apparel ex-CEO tries to reclaim company
13 Jan '16
1 min read
An investor group wants to buy the fledgling garment retail chain American Apparel for about $300 million and bring back its founder and former CEO Dov Charney.
Charney was fired from American Apparel in 2014 following allegations of sexual harassment and that he had violated the company's sexual harassment policy. Charney denied those charges.
According to media reports from US, Hagan Capital Group and Silver Creek Capital Partners have submitted a bid backing Charney saying he had a business plan that would improve American Apparel, which has faltered since he left.
Refusing to be drawn into further controversy, American Apparel said in a statement that it evaluates all bids consistently but it was now focusing on emerging from bankruptcy protection. The Los Angeles-based company filed for Chapter 11 bankruptcy protection in October.
Investors backing Charney said they would inject $130m, which would allow the company to exit bankruptcy protection with about $160 million of liquidity and new equity compared with about $75 million under its debtors' plan.
American Apparelwas founded in 1998. It sells its clothing in 218 stores around the world. (SH)
Charney was fired from American Apparel in 2014 following allegations of sexual harassment and that he had violated the company's sexual harassment policy. Charney denied those charges.
According to media reports from US, Hagan Capital Group and Silver Creek Capital Partners have submitted a bid backing Charney saying he had a business plan that would improve American Apparel, which has faltered since he left.
Refusing to be drawn into further controversy, American Apparel said in a statement that it evaluates all bids consistently but it was now focusing on emerging from bankruptcy protection. The Los Angeles-based company filed for Chapter 11 bankruptcy protection in October.
Investors backing Charney said they would inject $130m, which would allow the company to exit bankruptcy protection with about $160 million of liquidity and new equity compared with about $75 million under its debtors' plan.
American Apparelwas founded in 1998. It sells its clothing in 218 stores around the world. (SH)
Fibre2Fashion News Desk - India
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