American Apparel Inc., Los Angeles, has rejected the $300 million takeover bid from investors who support the return of the company’s former CEO Dov Charney, according to the Los Angeles Times.
The investors, Hagan Capital Group and Silver Creek Capital Partners, had previously submitted a $200 million offer in December and could still make another bid for the company, according to the report.
On Jan. 20, American Apparel will seek approval from a Bankruptcy Court judge for a reorganization plan it submitted when it filed for Chapter 11 in October. The plan, which has been approved by most of the company’s creditors, would take the company private and give almost total control to its largest bondholders. — L.V.
