The two worked together at American Apparel and have forged new ties with TSC now the exclusive distributor for Charney’s new enterprise.
The second Chapter 11— seen as key to getting a sale of all or part of the business done — is being called into question by the group owed $2.5 million from the company’s first bankruptcy.
Interest from Gildan Activewear, Color Image Apparel and possibly more bidders in the company’s facilities prompted the latest update on the company’s workforce.
The Los Angeles-area firm plans to enter the fray with a potential bid likely to rival what’s on the table by Gildan Activewear—unless Color Image can find a partner interested in the retail piece of the business.
The company’s head of human resources attempted to address employee concerns in a letter sent out Thursday, with many questions to go unanswered until a sale closes.
The company’s second bankruptcy, less than a year after emerging from the first, reveals a number of misfires.
A judge has ordered the company to pay up on an unpaid bill to FTI Consulting, with a payment due next week that could send the business over the edge.
The Los Angeles firm warned workers in a letter a sale of the company could lead to the business’ closure as sources say the European business is on the brink of being shuttered.
FTI, the firm brought on to help the company through its bankruptcy, alleges American Apparel owes it more than $2 million in administrative fees.
Dov Charney’s web site called That’s Los Angeles, along with other tracks on social media, shed some light on his next moves.
The one-time debtors that took the company out of bankruptcy are now looking for a buyer.
The order involves a lawsuit the American Apparel founder brought against his former legal counsel in March, alleging legal malpractice.