American Apparel signs $25 million agreement with Standard General
Deal or no deal
As part of the new deal, Standard general affirmed that it would give the retailer up to $25 million in immediate financial support, providing for a reconstituted board as well as giving Charney the temporary title of strategic consultant.
Standard General's much needed aid will help beef up the company's finances, as well as pay the $10 million owed to Lion Capital.
Additionally, Standard General will also support American Apparel's sweatshop-free, 'Made in USA' manufacturing philosophy and commitment to maintain its manufacturing headquarters in Los Angeles.
"This truly marks the beginning of an important new chapter in the American Apparel story," said Mr. Mayer. "With the support of Standard General, we are confident the Company will finally be able to realize its true potential."