Investor group offers to buy American Apparel for $300 million

Hagan Capital Group and Silver Creek Capital Partners said they had jointly offered to acquire bankrupt teen apparel retailer American Apparel Inc for $300 million.

The offer, which includes $90 million of new equity and a $40 million term loan, has the support of American Apparel founder and former Chief Executive Dov Charney, Hagan Capital and Silver Creek said on Monday.

The enterprise value of the deal is above the valuation of $180 million-$270 million "publicly stated by the debtor in its disclosure statement," the firms said.

The "debtor's plan is not feasible and will lead to poor long-term recoveries for the company's stakeholders and put thousands of manufacturing jobs in Los Angeles at risk," they said.

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"American Apparel evaluates all bids consistently," a spokeswoman for the retailer said in an email.

"The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month," she said.

The investment will be managed by the private equity arm of San Francisco- and Shanghai-based PressPlay Global, backed by Hagan and Silver Creek.

Separately, American Apparel said it had reached an agreement with creditors on the terms of its amended reorganization plan, which includes additional $40 million of capital.

The amended plan will give unsecured creditors pro-rata share of $2.5 million, up 150 percent from the payment that was provided for in the prior chapter 11 plan.

The company will file the amended plan in the coming days and seek approval for the plan in the U.S. Bankruptcy Court for the District of Delaware at the hearing scheduled for Jan. 20.

Charney, who founded American Apparel in 1989, said in December that he was exploring plans to revive the bankrupt company.

Cardinal Advisors LLC is Charney's financial adviser for the deal and Proskauer Rose LLP is the legal adviser to Hagan Capital and Silver Creek.