Connect with us

Hi, what are you looking for?

Jewish Business News


It’s Official: Former American Apparel CEO Dov Charney & His Pals Offer $300 Million For The Company

How Dov Charney Is at War With American Apparel Company He Created youtube

  • Offer valuing American Apparel at $300 million is superior to the debtor’s plan of reorganization and is a win-win solution for the Company and all of its stakeholders
  • Debtor’s plan is not feasible and will lead to poor long-term recoveries for the Company’s stakeholders and put thousands of manufacturing jobs in Los Angeles at risk
  • The acquisition proposal has the support of the Company’s founder, Dov Charney, whose leadership and vision is central to American Apparel’s long-term viability


Last week reported that Dov Charney had teamed up with a financial backer to make a bid for his former company, American Apparel, has been confirmed. Though instead of offering up $200 million for the retailer, as orinaally reported, Charney and his ally have sweetened the deal, throwing $300 million on the table.

The American Apparel investment would be managed by PressPlay Group, the private equity arm of San Francisco and Shanghai based PressPlay Global, which is backed by Hagan and Silver Creek,  announced today. Calling the offer superior to a bankruptcy plan that would see the company going to bondholders.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

This is a big move for Charney, who was kicked out of the company in December 2014 following allegations of misconduct. American Apparel has seen worsening sales since at least 2010, and things didn’t get much better after Charney’s departure. The retailer filed for bankruptcy protection in October of this year, after earlier admitting it’d run out of financing to keep things going.

“Dov’s creativity, entrepreneurialism and dedication are the cornerstone of American Apparel, ” Chad Hagan, managing partner of Hagan Capital, said in the statement. “Removing him from the company’s board and leadership was a shortsighted mistake, and we are seeing the results of this error unfold in the declining performance of the company today.”

The terms of the proposal includes an investment from the Investor Group of $130 million, including $90 million of new equity and $40 million of a new term loan. American Apparel would exit bankruptcy with approximately $160 million of liquidity and new equity, including cash, a new $50 million undrawn revolving credit facility, and $90 million of equity cushion at closing, versus approximately $75 million under the debtor’s plan of reorganization.

The total enterprise value of the proposed transaction is $300 million, an attractive valuation to the debtor and above the valuation range of $180 to $270 million publicly stated by the debtor in its disclosure statement. The Investor Group’s offer is an upward revision to a prior proposal submitted by the Investor Group to the Company in December 2015.

Under the Investor Group’s offer, the Company’s pre-petition senior lenders will receive a recovery of over 100 percent versus 33 percent to 77 percent under the debtor’s plan, assuming the low and high values of the debtor’s valuation range. Additionally, the unsecured creditors will receive a recovery of ten times that under the debtor’s plan, plus the benefits from the enhanced long-term viability of the enterprise.

READ MORE: American Apparel

American Apparel Tried To Sexualize Staff With Black Friday Uniform

Clothing brand American Apparel is gearing up for the whirlwind that is Black Friday, however, they are facing some scrutiny for their specially-made employee shirts that make some disturbing implications. Their More…

Dov Charney

American Apparel files for bankruptcy, operations to continue Sales down in Australia amid global turmoil The company may shutter its Oak stores in LA and NY Ex-American Apparel boss Dov Charney lives in a Los More…

American Apparel CEO Paula Schneider

In a statement on Monday, American Apparel said that it had filed for Chapter 11 bankruptcy protection, and that it expected to complete a restructuring within roughly six months. The company added that More…

American Apparel Paula Schneider

The last two years has been hard on the clothing company American Apparel. Now CEO Paula Schneider Says its business and cash position have deteriorated so badly that it is not even sure it will be able to stay More…

American Apparel CEO Paula Schneider

The clothing retailer warned investors they could lose everything if it is unable to raise more money and American Apparel reported another quarter of big losses. American Apparel’s cash problems keep More…

Dov Charney

Hedge fund Standard General has sued American Apparel’s ousted Chief Executive Dov Charney for the first time, the latest move in a bitter legal saga that began after he was fired in December. American More…

American Apparel announced Monday that it is closing stores and laying off employees and noted that it faces nearly two dozen lawsuits from ousted CEO Dov Charney.

American Apparel said the $30 million in cost cutting will take place over the next 18 months. The Los Angeles-based retailer did not say how many of its 239 stores would be shuttered or how many its 10, 000 workers More…

Dov Charney,   chairman and chief executive officer of American Apparel.

Dov Charney and his former firm American Apparel are trading law suits. Charney was the one who fired the first shot in this round of fighting between the two. Will this high profile divorce ever end? More…

Dov Charney

A shareholder class-action suit filed on Wednesday accused New York-based hedge fund Standard General of holding American Apparel hostage. Reportedly, it would reap huge benefits if the clothing company declared More…



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.