Dov Charney plans to buy back American Apparel
The saga continues...
It hasn't even been one week yet since American Apparel fully fired Dov Charney and named Paula Schneider chief executive officer – effective January 5 – and the former founder is already planning to re-establish himself at the firm he created back in 1989.
Dov Charney has joined forces with a private equity firm and is planning a takeover bid that values the company at $1.30 to $1.40 a share, according to the New York Post. Sources told the newspaper that the firm, whose identity is still not confirmed, wrote to American Apparel's board of directors to confirm its interest in buying the cash-strapped clothing company.
The Wall Street Journal has named private-equity firm Irving Place Capital – whose fashion portfolio includes Rag & Bone and 7 for All Mankind – as having made the move to buy out American Apparel.
However, it is not clear whether that is the same company allegedly associated with Charney, and today American Apparel Inc. adopted a new, one-year stockholder rights plan to stop any investor from acquiring a controlling stake in the embattled firm without the consent of other shareholders – making it interesting to see whether Charney can find his way back into the company.