Troubled American Apparel Inc. Receives a Takeover Bid

LOS ANGELES (CNS) – Troubled retailer American Apparel Inc. has received
a takeover bid of more than $200 million from an investor as part of a plan
that would return ousted Chief Executive Dov Charney back to the company, a
person familiar with the situation told the Los Angeles Times.
The Los Angeles clothing manufacturer, which filed for Chapter 11
protection in October, is set to emerge from bankruptcy this month.
The reorganization plan submitted at the time of the bankruptcy filing would
take the company private and hand nearly 100 percent control to its largest
bondholders.
The takeover bid could complicate the proceedings. The deal, which was
submitted in late December, would return Charney to American Apparel in a
senior role, the person told The Times.
Charney was fired in 2014 as chief executive and chairman after an
investigation into alleged inappropriate behavior with employees and misuse of
company funds. Since then, he has been fighting to regain control of the
company he founded.
Charney announced in December that he had hired Cardinal Advisors to
help explore options with potential investors. It was the first indication that
Charney may try to offer an alternative plan in Bankruptcy Court.
Cardinal Advisors declined to comment. American Apparel said in a
statement that it “evaluates all bids consistently.”