Ousted American Apparel Founder Hires Investment Bank to Regain Control of Struggling Retailer
American Apparel founder Dov Charney is working with Cardinal Advisors, a boutique investment bank, to organize a rumored $200M bid to regain control of his creation.
Charney has been trying to regain control of American Apparel ever since being ousted last year following allegations of misconduct. After he left, the already struggling retailer fell further, eventually filing for bankruptcy protection in October.
But Charney’s running out of time—creditors are scheduled to vote in the coming weeks on a company reorganization proposal. Despite their rocky history, the retailer didn't close the door on a Charney return.
“American Apparel appropriately evaluates all indications of interest in the company," Liz Cohen, a company spokeswoman, told Bloomberg.
In order to get back in, Charney needs to convince American Apparel’s managers that he can offer more money to creditors. And to do that, he needs backers.
Most of his net worth was tied up in American Apparel stock—he says he can't even afford to pay his lawyer anymore—which was wiped out when the company filed for bankruptcy. [Bloomberg]