American Apparel to sell stake to private equity firm
American Apparel is set to sell a 20% stake in the business to private equity firm Lion Capital, according to reports.
The young fashion brand will sell the stake for around $80 million (£57m), in a deal expected to be announced today.
The deal will come as American Apparel races to pay off $16m (£11.4m) of debts to backers. American Apparel’s store sales fell 9% last month, the first monthly drop in the business’ history.
The New York Times reported that shares of American Apparel had been hit by concerns over the retailer’s ability to pay debts.