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American Apparel Rejects Takeover Bid From Former CEO Dov Charney & Pals

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(TheGlassPeople)
Dashing former CEO and founder Dov Charney’s dreams (for now), American Apparel’s board of directors has rejected the $300 million takeover bid he put on the table earlier this week with the help of financial backers.

Bloomberg reports that the company is open to a revised offer from the funds backing Charney and his friends at Hagan Capital Group and Silver Creek Capital Partners.

The clock is ticking: A proposed plan backed by American Apparel’s lenders to get the company out of bankruptcy would give ownership to bondholders in exchange for a reduction in debt, and will go in front of a judge Jan. 20.

Charney and his backers will have to sweeten the pot if they want to get the company, or convince the judge to toss the competing proposal.

While American Apparel has yet to confirm or deny Bloomberg’s report, sources at the company tell Consumerist that it is accurate.

American Apparel Said to Reject Charney-Led Takeover Bid [Bloomberg]


by Mary Beth Quirk via Consumerist

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