American Apparel Amends Credit Agreement with Lion Capital
Los Angeles-based American Apparel Inc., a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, announced that on September 30, 2010 it entered into an amendment to its credit agreement with Lion Capital which, among other things, eliminates the minimum Consolidated EBITDA covenant for the dates through and including December 31, 2010, and provides for the minimum Consolidated EBITDA covenant to be tested monthly during 2011.
"Lion Capital has enormous admiration for both American Apparel and its founder, Dov Charney," said Lyndon Lea, founder and partner of Lion Capital. "We are working together with Dov to realign the capital structure of American Apparel to support a number of key initiatives within the business, including the hiring of several new senior executives. We wholeheartedly support the company's 'Made in USA' philosophy under which 7,000 industrial workers in downtown Los Angeles are paid a fair wage. We are particularly impressed by Dov's passion and energy, and have complete confidence in the American Apparel brand and its business model as an integrated manufacturer and retailer."
"We are grateful for this expression of continued support for American Apparel's mission by Lion Capital," said Dov Charney, chairman, CEO and founder of American Apparel. "I am touched that Lion Capital is sensitive to the unique challenges that the company has faced in the past year. We look forward to continuing to work closely with Lyndon and Lion Capital over the next several years as we work to build a great future for American Apparel."
About American Apparel
American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of September 30, 2010, American Apparel employed approximately 10,000 people and operated over 280 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. American Apparel also operates a leading wholesale business that supplies high-quality T-shirts and other casualwear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website at http://www.americanapparel.com.