Two investors aligned with Dov Charney have submitted a $300 million offer to buy American Apparel Inc.
Hagan Capital Group/HCG Inc. and Silver Creek Capital Partners announced Monday that their offer to buy the beleaguered apparel maker comes with the support of Charney, the retailer’s founder and former chief executive who was ousted in December 2014.
While Hagan and Silver Creek didn’t outline a potential role for Charney, the investors said in a statement that Charney’s “leadership and vision is central to American Apparel’s long-term viability.”
Charney also made clear he is eager to rejoin the company he founded in 1997.
“I am confident that given the opportunity I will successfully turn around the company's fortunes, return it to profitability and to a market leading position again,” Charney said in the statement.
American Apparel, which filed for Chapter 11 bankruptcy protection in October, said: “American Apparel evaluates all bids consistently, and in the ordinary course. The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month.”
The Delaware bankruptcy court has approved the company’s use of a $90 million bankruptcy financing package. American Apparel’s creditors and lenders approved its reorganization plan Jan. 7 with an additional $40 million in capital. A final decision is expected from the court on Jan. 20 as to whether the plan can go forward.
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