American Apparel Just Received $300M Bid To Bring Ousted CEO Back
In a continuation of the American Apparel saga, two investment firms (Hagan Capital Group and Silver Creek Investors) put in a $300M bid to help ex-CEO and ousted founder Dov Charney regain control of the struggling retailer.
Charney was forced to step down last year following allegations of misconduct; meanwhile, American Apparel's financial woes deepened, leading to a bankruptcy filing in October.
Despite the messy split, the company hasn't ruled out the possibility of a Charney return. But first, Charney—who says he's too broke to pay his lawyer—needs to convince American Apparel’s managers that he can offer more money to creditors.
Charney's been working with boutique investment bank Cardinal Advisors to organize a rumored $200M bid. The takeover bid from Hagan Capital Group and Silver Creek Investors certainly tops that, but it remains to be seen whether it will be enough to bring Charney back.
A bankruptcy court hearing is scheduled on Jan. 20. [RD]