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Dov Charney is preparing a $300 million takeover bid for American Apparel that would give him back c

Discussion in 'Fashion' started by EF-Roger, Jan 11, 2016.

  1. EF-Roger

    EF-Roger Entrepreneur

    Dov Charney, the founder and former CEO of American Apparel who was fired by his own board in 2014, is preparing a $300 million bid to buy the company that would put him back in control of the retail chain.

    Charney is backed by Hagan Capital Group and Silver Creek Capital Partners, and their private equity unit PressPlay Group, according to a press release seen by Business Insider.

    The company previously rejected a bid from Charney in December that valued the company at $200 million. The company is currently controlled by its debt holders, who include Standard General, Monarch Alternative Capital, Coliseum Capital, Goldman Sachs, and Pentwater Capital Management. If they reject his new plan, Charney can attempt to persuade a bankruptcy judge to impose his plan anyway, if it treats creditors and shareholders better than the incumbent plan.

    read more Dov Charney is preparing a $300 million takeover bid for American Apparel that would give him back control of the company

  2. azgold

    azgold Moderator Entrepreneur

    I've quoted American Apparel for promotional products customers for years. Own some of their stuff.

    Their reputation in that industry is:

    - their clothing is only for young, hip people looking for fun
    - their clothing is sexy (just the perception because of the way they advertise)
    - they have near-naked college aged girls wearing only underwear and a skimpy tank top at trade shows. Ask me how much the female buyers thought of that. On the other hand, all the male reps and buyers loved it. :)

    I thought that I had read the U.S. division had gone bankrupt several months ago. Wonder what changes Charney would make to get the company profitable again. Obviously, what he was doing didn't work very well.

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