The offer from an investor group working with American Apparel founder Dov Charney has reportedly been rejected by the company’s board, an assertion the bidders have called untrue.

A report late Thursday from Bloomberg, citing two unnamed sources, said the $300 million bid from a group involving Hagan Capital Group and Silver Creek Advisors was voted against by the American Apparel board.

American Apparel declined to comment on the report.

Charney said no formal rejection has been received from the company to the Hagan-Silver Creek group and that a meeting today to discuss the offer was pushed back by the company. “This is not over,” he said.

In fact, talks continue, according to Chad Hagan, managing partner and group president of Hagan Capital.

“Negations are ongoing and we are confident that American Apparel will accept our superior business model that centers on long-term value, ethical management and preserving American manufacturing jobs,” Hagan said in an emailed statement.

The offer, announced Monday, would bring Charney back to the company he was ousted from in late 2014 for what the company said was a violation of certain terms of his employment contract. Charney has contended in multiple lawsuits now that his firing was part of a scheme to rid the company of him and sell it.

If the board has rejected the offer as it stands, the investor group would need to submit a revised bid — of which the group is willing to increase the purchase price, according to Charney — or wait for the court to make a determination on the matter at the Jan. 20 hearing, at which time a judge will rule on American Apparel’s bankruptcy plan.

load comments
blog comments powered by Disqus