Buyout talks between New York private equity firm Irving Place Capital and Downtown Los Angeles apparel maker American Apparel Inc. have hit a snag, according to a Bloomberg story citing a handful of unnamed sources with knowledge of the discussions.
American Apparel spokesperson Liz Cohen said the company has “no comment,” but Bloomberg reports that American Apparel is still seeking a sale.
Irving Place Capital, which first approached American Apparel last year, has proposed purchasing the retail chain for $1.40 a share. Bloomberg cites sources who say that Irving “has grown uncertain about its proposed valuation” after talks with American Apparel in recent months.
American Apparel’s shares closed Monday at $0.76, down about 1 percent for the day.