Ousted American Apparel CEO Dov Charney is again trying to buy back the company he founded.
Charney, who was fired as CEO of the trendy apparel brand more than a year ago, is preparing another bid to buy American Apparel out of bankruptcy, according to a report by Business Insider. An investor working with Charney previously offered a reported $200 million for the retailer, a bid American Apparel rejected, according to BI. The latest takeover offer by Hagan Capital Group and Silver Creek Capital Partners, which have the support of Charney, is pegged at $300 million.
Hagan Capital Group managing partner Chad Hagan confirmed the report to Coins2Day.
American Apparel terminated Charney as CEO in December 2014, six months after suspending him for alleged misconduct, which Charney has denied. As head of the retailer, Charney had faced repeated accusations of sexual harassment from store employees and claims that he discriminated against less attractive staff because they undermined the corporate “aesthetic.”
Less than a year after his ouster, American Apparel filed for bankruptcy as sales continued their downward spiral. The company is set to exit Chapter 11 protection this month.
For Charney’s $300 million bid to succeed, American Apparel’s debt holders—lead by Monarch Alternative Capital—must accept it, or he must convince the bankruptcy judge to implement it anyway if it offers creditors and shareholders a better deal that the existing plan.
Either option was made more difficult by the news Monday that American Apparel’s debtors had approved its own reorganization plan. The company characterized the approval as “a significant step forward that will enable the company to continue implementation of its current turnaround strategy under the existing leadership team.”
In response to Charney’s renewed offer for the company, an American Apparel spokesperson said that the retailer “evaluates all bids consistently, and in the ordinary course. The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month.”
This post has been updated to reflect comments from American Apparel.
