Apr 6, 2011
American Apparel searches for a buyer
Apr 6, 2011
April 6 - Clothing chain American Apparel is looking for a buyer, peHUB reported on Tuesday, citing three people familiar with the matter.
The company, which warned last week that it may have to file for bankruptcy if it does not get enough money to keep running, is working with adviser Rothschild to explore a sale, peHUB said.
Lace chiffon dress by American Apparel
One of American Apparel's largest creditors, Lion Capital, has hired restructuring firm Miller Buckfire & Co in case developments push the company toward a Chapter 11 bankruptcy filing, peHUB reported, citing a source.
If the company is sold, it is unlikely that the buyer will permit founder and Chief Executive Dov Charney to remain, two sources told peHUB.
Charney, reached by telephone, declined to comment.
American Apparel has been dealing with a long-running sales slump. Charney has been dealing with problems of his own, including charges that he treated an ex-employee as a sex slave.
American Apparel shares closed at $0.82 on Tuesday on the American Stock Exchange.
(Reporting by Nivedita Bhattacharjee in Bangalore. Editing by Robert MacMillan)
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