As Dov Charney continues to battle to find his way back into his beloved
American Apparel with a rumour has that the now
bankrupt teen retailer has rejected the offer.
The company board has reportedly voted against the latest takeover offer
involving Dov Charney from investor group Hagan Capital Group and Silver
Creek Advisors, according to sources close to the matter claims a report
from Bloomberg on Thursday evening. The news comes not long after American
Apparel announced that it had obtained unanimous approval for its
However, another report from WWD claims that Charney has yet to receive any
form of a formal rejection from American Apparel, and that a previously
scheduled meeting between the apparel retailer and the Hagan-Silver Creek
Group was dissolved. “This is not over,” said Charney, whilst Chad Hagan,
managing partner and group president of Hagan Capital stressed that
discussions where still going on.
“Negations are ongoing and we are confident that American Apparel will
accept our superior business model that centres on long-term value, ethical
management and preserving American manufacturing jobs,” added Hagan in a
statement. However, if the board at American Apparel has indeed rejected
the offer from the investor group, then the investor group still has two
options to pursue.
Either the Hagan-Silver Creek Group would have to hand in a revised bid for
American Apparel, and Charney is confident that the group is willing to
rise it offer, or wait January 20 when a judge will rule on American
Apparel’s bankruptcy plan so the court can make a decision on the matter.
The 300 million US dollar offer, which was officially announced on Monday,
would see Charney return to the company he was ousted from in December,
2014, for violating a series of terms in his contract, stated the company.
Since then Charney, and several senior former American Apparel employees,
have contended that his removal from American Apparel was part of a larger
scheme to bankrupt it and sell it off.