American Apparel Reportedly Declines Charney's Bid
We've been reporting on the ongoing saga surrounding Los Angeles-based American Apparel's restructure application and the $300 million takeover bid from ousted CEO Dov Charney. Now, sources are reporting that the board of American Apparel has rejected the takeover bid.
According to Bloomberg, the bid will still go to court on Jan. 20, where American Apparel will seek approval for its reorganization plan introduced in October 2015. If approved, senior lenders, including Monarch Alternative Capital LP, would take over the company.
Charney has argued that his Hagan Capital and Silver Creek Capital Partners-backed proposal is better for creditors than American Apparel's plan. The bid was originally worth $200 million, but Charney and company increased it to $300 million this week.
The New York Times reported that it is currently unclear whether or not Hagan Capital and Silver Creek Capital Partners would raise the offer again or wait until the issue goes to bankruptcy court.
For more information on American Apparel, visit www.americanapparel.net.