American Apparel Explores Sale Options
While this story is still developing, Los Angeles-based American Apparel might be exploring a sale, according to Reuters. Confidential sources said the company hired investment bank Houlihan Lokey Inc., Los Angeles, to look into the possibility of selling the company.
This news comes six months after American Apparel emerged from Chapter 11 bankruptcy, and less than a week since the Los Angeles Times reported that the apparel company is contemplating a move out of its downtown Los Angeles manufacturing facility to combat wage hikes.
"As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives," said American Apparel in a statement, according to Reuters.
Other than that, American Apparel has not provided any specifics on the company's future plans.
Dov Charney, American Apparel's founder and former CEO, failed to buy the company out of bankruptcy in January with a $300 million offer. But Charney expressed to The Street that he has a "mild interest" in making another offer.
"No one has contacted me," said Charney. "I'm not familiar with what the terms are. I would always keep an open mind. I've spoken with various investors both before and after this news came out."
Charney also told The Street that he thinks American Apparel will face some challenges pertaining to the company valuation.
Promo Marketing will continue to update this story as it develops.