Investor group offers to buy American Apparel for $300 million
Hagan Capital Group and Silver Creek Capital Partners said they had jointly offered to acquire bankrupt teen apparel retailer American Apparel Inc for $300 million.
The offer has the support of American Apparel founder and former chief executive, Dov Charney, Hagan Capital and Silver Creek said on Monday.
The investment will be managed by the private equity arm of San Francisco- and Shanghai-based PressPlay Global, backed by Hagan and Silver Creek.
The proposal includes $90 million of new equity and a $40 million term loan.
The enterprise value of the deal is above the valuation of $180 million-$270 million “publicly stated by the debtor in its disclosure statement,” the firms 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,” they said.
American Apparel was not immediately available for comment.
Charney, who founded American Apparel in 1989, said in December that he was exploring plans to revive the bankrupt company.
Cardinal Advisors LLC is Charney’s financial adviser for the deal and Proskauer Rose LLP is the legal adviser to Hagan Capital Group and Silver Creek Capital Partners.