Hipster brand American Apparel Inc is in talks to bring in an outside restructuring firm as the manufacturer and retailer struggles to fix its flagging operations, sources have told Reuters.
Its main lender, Bank of America, pressed the Los Angeles company to hire the firm, a specialist in corporate turnarounds, according to people familiar with the matter. The firm is not being brought in to arrange a bankruptcy, sources said, but to help improve operations and its financial condition.
The firm has been meeting with eccentric American Apparel founder and Chief Executive Dov Charney and his executives, but did not want to be identified because it has not yet formally signed an engagement letter for the job, these people said. People close to the matter said American Apparel still had plenty of room to maneuver to fix its fiscal woes, and while the situation was serious, a bankruptcy filing was unlikely, at least for now.
An attorney and spokesman for American Apparel declined to discuss the matter.
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