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Dov Charney's been trying to bust back into financially troubled American Apparel ever since he was forced out a few years ago. The controversial former CEO's believers will be happy to know that their old leader is now hoping to buy his way back in, thanks to a $300 million bid by some big-money backers.
As our national site reports, an investor group put in the bid on the very same day that the LA-based brand's stakeholders approved its bankruptcy plan, which would relinquish all control by stakeholders (including Charney, the company's largest shareholder).
One investor, Chad Hagan of Hagan Capital, said in a statement that "removing [Dov] from the company's board and leadership was a shortsighted mistake, and we are seeing the results of this error unfold in the declining performance of the company today."
A court hearing is set on January 20th to confirm American Apparel's bankruptcy plan, and clothing manufacturer says it "evaluates all bids consistently [and] remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month."
Update: Negotiations between American Apparel and Hagan Capital, the investment group backing Dov Charney, have hit a dead end, reports WWD. The firm originally offered $235 million, then upped its bid to $300 million last week.
In a letter filed in court today, the LA-based company noted that a late Monday request for documents by Charney's attorneys "is gamesmanship that the court should not countenance," and that the former CEO "had every opportunity to seek discovery earlier." (Ouch.)
American Apparel also stated that Hagan Capital's new bid was "dead and no further bids are forthcoming," but investment company head Chad Hagan explained in an email to WWD that his firm is still "interested in doing a deal so long as [American Apparel shows] good faith and are willing to negotiate. So far the board and the bondholders have not been willing to do so."
Needless to say, the saga continues.