American Apparel Secures $15 Million Investment

Last week's rumors that American Apparel was in talks to receive an investment to prevent insolvency were borne out over the weekend, with a private group investing $15 million into the company, with the potential to increase that amount up to $45 million.

The investment includes $15 million in stock warrants, at a stock price of $0.90 a share, with the option to invest another $30 million at the same rate. American Apparel CEO Dov Charney also invested $700,000 of his own money, buying 800,000 shares at the $0.90 price. In total, the 15.8 million shares of stock represent 20 percent of the company's total shares.