American Apparel Considering Sale
It’s been a rough holiday season for American Apparel. The cash-strapped retailer is reportedly cutting back on production and considering selling.By Nathan Giannini | December 29, 2014
It hasn't been a very good holiday season for American Apparel. First there was the unseemly and expensive ouster of its founder and former CEO Dov Charney. Then a holiday discounting strategy that was less than successful left the retailer strapped for cash.
Now hedge fund Lion Capital, which has lent money to American Apparel, is urging the clothing chain to consider options including the possible sale of the company.
The Wall Street Journal was the first to report the news, noting Lion Capital made its case in a letter to American Apparel's board Sunday.