$200-Million Takeover Bid Would Bring Dov Charney Back to American Apparel
Troubled retailer American Apparel Inc. has received a takeover bid of more than $200 million from an investor — part of a plan that would return ousted Chief Executive Dov Charney back to the company, according to a person familiar with the situation.
The Los Angeles clothing manufacturer, which filed for Chapter 11 protection in October, is set to emerge from bankruptcy this month. The reorganization plan submitted at the time of the bankruptcy filing would take the company private and hand nearly 100% control to its largest bondholders.
This takeover bid could complicate the proceedings. The deal, which was submitted in late December, would return Charney to American Apparel in a senior role, the person said.
Charney was fired in 2014 as chief executive and chairman after an investigation into alleged inappropriate behavior with employees and misuse of company funds. Since then, he has been fighting to regain control of the company he founded.
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