American Apparel Rejects $300M Takeover Bid (Report)
Dov Charney's plans to weasel his way back into the company he founded were thwarted once again.
Bankrupt retailer American Apparel reportedly has rejected a $300 million takeover bid offered by investors aligned with the company's controversial founder and former CEO, Dov Charney.
American Apparel's board — the same board that fired Charney back in 2014 after reports of sexual harassment, mishandling of finances and other misconduct — has rejected an offer put forth by Hagan Capital and Silver Creek Partners, The New York Times reported, citing sources.
Hagan Capital and Silver Creek made known their faith in Charney's abilities as a leader and a businessman and reportedly planned to reinstate him in an undisclosed capacity within the company.
However, despite the buzz, Hagan Capital managing partner and group president Chad Hagan released a statement saying that the deal is still in the works.
"Negations are ongoing, and we are confident that American Apparel will accept our superior business model that centers on long-term value, ethical management and preserving American manufacturing jobs," he said in the statement published by WWD.
If it doesn't accept the bid, American Apparel's board will continue with its current turnaround strategy — starting by getting approval of its reorganization plan at a hearing on Jan. 20.
The company didn't immediately respond for a request for comment from Pret-a-Reporter.