After tunneling its way out of bankruptcy earlier this year, the still-struggling American Apparel is now reportedly seeking out an appropriate buyer.
The investment bank Houlihan Lokey has been tasked with selling the financially damaged retail brand and, according to WWD’s sources, they’ve been in touch with the “usual suspects” to line up potential owners:
Despite the well-documented woes before its bankruptcy in October — including a long string of losses, operational difficulties and the dramatic ouster and battle with its founder Dov Charney — American Apparel is seen as having some continuing appeal in the marketplace.
Even so, just who the “usual suspects” are in this case is not entirely clear.
Charney, who previously partnered with investment firms in January and tried and failed to buy back American Apparel for $300 million, seems to find the company’s struggles “astonishing.”
“In December 2015, I submitted a $525 million indication of interest, and now less than a year after they went bankrupt, they’re struggling and trying to sell the company. That I find astonishing,” he told WWD. “They’ve stripped the company of its assets. They’ve fired all the creatives with a brutal corporate control battle. They’ve lost hundreds of workers. It’s astonishing.”
It kinda sounds like he thinks he can do a better job of running his old factory. Charney says, “No one’s approached me [about buying]. I don’t know what the terms are.” In the meantime, American Apparel has continued with cutbacks in an effort to downsize operations while also replenishing its brand image to be less overtly sex-driven.