Struggling US retailer American Apparel has confirmed it has received a takeover bid that values the company at between $226m and $243m (£145m-£156m).
The offer from Irving Place Capital is too low, sources told Reuters, adding that while the board is likely to reach a decision in early January, it is not actively soliciting offers. The board must review caveats to the deal, which include that American Apparel must reach an agreement with deposed founder DovCharney, who has a 43% stake in the company, and must continue to receive funds from lenders.
On Sunday, the company announced a one-year shareholder rights plan, which aims to prevent a rapid takeover through stock purchases.
The Los Angeles-based firm fired its controversial founding chief executive Charney last week after an internal investigation. He is being replaced by Paula Schneide, The company’s first female chief executive, she will join on January 5. Presently Schneider is president of ESP Group, which owns US menswear label English Laundry and women’s sleepwear label French Dressing among others.
The company has appointed Colleen Brown as its sole chairman to replace Allan Mayer and David Danziger. She is American Apparel’s first female chairman.