- Sara Ehlers |
Los Angeles - A 200 million dollar bid is now out for American Apparel. After undergoing numerous ups and downs for 2015, the SoCal retailer received a possible offer from an undisclosed source.
As the company recently announced that they would be seeking a 90-day extension for their bankruptcy filing, sources have announced that a binding offer has been made by a Los Angeles firm. The name of the firm has yet to be disclosed. The offer came at a time when the company was in the process of accelerating its bankruptcy and fix any potential issues that coincide with its reorganization plans. American Apparel filed a reorganization plan so they could force out other potential plans that they said would impede rather than further the company's attempts to come out of bankruptcy.
200 million dollar bid proposal for American Apparel
According to court documents, WWD reported that the proposal would set American Apparel free of its bankruptcy. It would leave the Los Angeles-based company with 170 million dollars out of bankruptcy as well as an additional 30 million in cash. The bid, which was submitted on December 29, is still under consideration from the company.
WWD confirmed that the firm in question has no connection to the brand's controversial founder Dov Charney who has been working tirelessly to realign himself with the company. Charney, in an attempt to persuade the company to take alternative bids, submitted an objection letter on January 7 highlighting flaws with the company’s current strategy. Additionally, his objection stated an alternative proposal by two investment firms, which are said to not be in connection with Charney.Currently, there is no confirmation on whether American Apparel will take the bid or not, however there will be a hearing for the company’s reorganization strategy on January 20.
Co-author: Kristopher Fraser