American Apparel Founder Not Ready To Give Up Yet, Hires Investment Bank To Work On Bid For The Company

Now that American Apparel has filed for bankruptcy after losing money for years, there’s at least one very interested party possibly looking to swoop in and snap it up: the company’s founder and former CEO Dov Charney isn’t going to let the small matter of his termination from the company get in his way, and has hired an investment bank to help him put together a potential bid.

If at first you don’t succeed, try, try again, right? That seems to be Charney’s plan, after his failed takeover bid in 2014. He’s brought in a small investment bank called Cardinal Advisors LLC to evaluate options, reports Bloomberg.

“Charney is confident that new and existing investors, working with him and his team of industry leaders, would be able to realize significant long-term value for American Apparel’s stakeholders,” according to a statement from his camp sent to Bloomberg.

Charney, the former chairman and CEO, was kicked out of the company in December 2014 following allegations of misconduct. American Apparel has seen worsening sales since at least 2010, and things didn’t get much better after Charney’s departure. The retailer filed for bankruptcy protection in October of this year, after earlier admitting it’d run out of financing to keep things going.

The final approval for American Apparel’s reorganization plan is expected on Jan. 20, after it evaluates bids it may receive.

Update: An American Apparel spokesperson tells Consumerist that nothing official is on the table yet.

“We can confirm that there is currently no transaction for the Board to consider, and that Mr. Charney has submitted nothing more than an indication of interest,” the spokesperson said via email. “American Apparel evaluates all indications of interest consistently, and in the ordinary course.”

American Apparel Founder Hires Investment Bank to Pursue Bid [Bloomberg]