Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

American Apparel offered refinancing options

Struggling US fashion chain American Apparel is reported to have been approached by a private equity firm offering to refinance its debt.

According to reports, the beleaguered retailer has been offered a $100m (£61.3m) loan by private equity firm Leonard & Green Partners for it’s name and intellectual property, which it could use to pay off the $83.8m (£51.4m) which it owes to London-based private equity firm Lion Capital.

However, American Apparel founder Dov Charney, who holds a 47.1% stake in the company, is reported to be reluctant to put the company’s brand name and intellectual property at risk. Charney declined to comment.

At the beginning of August, the retailer said it had narrowed its losses for the three months ended June 30 as losses fell to $213,000 (£130,000), down from $14.7m (£8.98m) in the same period a year earlier. Sales increased slightly to $132.8m (£81.3m) up from $132.7m (£81.2m).

Leonard Green & Partners current retail investments include US-based businesses J Crew, Neiman Marcus Group, Sports Authority, Tourneau and David’s Bridal.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.