Bankrupt teen apparel retailer American Apparel has recently been offered to be bought over by investor group Hagan Capital Group and Silver Creek Capital Partners for US $ 300 million.
The value given by the investor group is more than the valuation of US $ 180-270 million, and it includes US $ 90 million of new equity and a US $ 40 million term loan. On the other hand, a representative of the retailer said, “the debtor’s plan is not feasible and will lead to poor long-term recoveries for the company’s stakeholders and put thousands of manufacturing jobs in Los Angeles at risk. The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month.” With support from Hagan and Silver Creek, the investment will be managed by the private equity arm of San Francisco- and Shanghai-based PressPlay Global.
Also Read – American Apparel’s Former CEO Plans a Revival
While, American Apparel has reached an agreement with creditors on the terms of its amended reorganization plan, which includes additional US $ 40 million of capital. The amended plan will be filed by the company soon and it will seek approval for the plan in the US Bankruptcy Court for the District of Delaware at the hearing scheduled for January 20.
In December 2015, Dov Charney, founder of American Apparel had talked about his plans of reviving the bankrupt apparel company.
