American Apparel (Los Angeles) has received a takeover bid of more than $200 million from an investor, according to the LA Times. Some news outlets, like Bloomberg Business, are reporting the total sum to be closer to $300 million.
Part of the takeover agreement would help Dov Charney, the founder of American Apparel, be reinstated into a senior position at the brand. Charney was fired from the company by its board in 2014.
“The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month,” a company spokeswoman said last Thursday, according to The Wall Street Journal.
Also according to The Wall Street Journal, an acceptable bid for the company would have to cover $90 million for postbankruptcy financing as well as provide $40 million of exit financing, which is part of the company's Chapter 11 plan. The amount would also have to exceed $350 million to “cover the money owed to the bondholders in the brankruptcy process,” WSJ reports.
It was revealed Monday, Jan. 11, that Hagan Capital Group and Silver Creek Capital Partners are the investors backing Dov Charney's bid for the company.