Los Angeles investment firm Cardinal Advisors confirmed it is working with Dov Charney on a potential bid for the company he founded and led up until late last year.
Charney put out a statement today that said he “is exploring plans with investors and industry executives in an effort to develop a value-maximizing solution for the company, its thousands of manufacturing, retail, administrative and creative employees, its customers, as well as the Los Angeles community where American Apparel is one of the largest private sector employees.”
The Cardinal executive, requesting anonymity, pointed out differing views on Charney, but argued that he is likely the best person to run the brand and bring it back to health. American Apparel filed for bankruptcy in October.
The development solidifies buzz that Charney had been working to put together a deal since his ouster from the company late last year, during which time he has also launched a raft of lawsuits against American Apparel and Standard General along with current and former executives and board members of the company.
Cardinal Advisors was launched last year by former executives of investment firm Moelis & Co., which is advising American Apparel.
Cardinal had initially reached out to Charney and began conversations with him several months ago.