Second Time Through?: Billionaire Ronald Burkle might have never gotten over American Apparel Inc. Two financial sources said the financier’s Yucaipa Cos. has taken a look at the beleaguered company with an eye toward an acquisition, although it’s not clear exactly how interested the investment firm is in its old flame.
This story first appeared in the September 9, 2016 issue of WWD. Subscribe Today.
A deal would reunite Burkle with the colorful basics brand, which rose to prominence with the antics of, and allegations against, founder Dov Charney, his racy marketing aesthetic and his commitment to the Made in the USA cause. In 2010, Yucaipa bought 6 percent of American Apparel for $5.9 million, but sold the stake a year later. (Charney was ousted from the company in 2014).
Others might also be interested. Chad Hagan, managing partner of Hagan Capital Group, who’s working with Charney on his new project, That’s Los Angeles — said: “I’m surprised that it went back up for sale so soon. It kind of caught us off guard and I don’t know if we’re really interested in buying American Apparel at this time. That’s not to say we wouldn’t be interested.”
American Apparel hired Houlihan Lokey to explore a sale last month, about six months after exiting bankruptcy. The investment bank and American Apparel declined to comment while a representative for Burkle did not immediately return queries Thursday afternoon.