American Apparel may recieve revised offer after rejecting 300 million dollars bid

Los Angeles – The fashion-forward retailer has been tumultuously busy with negotiations, offers, and proposals the last couple of months. Although the Los Angeles-based chain may not take their highest bid offer yet, American Apparel can expect to see a new bid soon in recent news.

In deciding which offers to take, American Apparel has reached out to approximately 59 interested parties. However, there are no leads on exactly which direction the company is going to take. Recently, the company announced that it would not take the 300 million dollar bid from Hagan Capital and Silver Creek. A reported submitted on Thursday, January 14, confirmed that the offer, which was 65 dollars higher than its initial bid, was rejected. The reason for the rejection was due to American Apparel’s hopes for their reorganization plan and how it can affect the future of the company. However, that doesn’t mean that Hagan Capital has given up yet.

American Apparel rejects 300 million dollars offer; Hagan Capital may rebuttal

According to reports by WWD, a new offer is underway for the controversial retailer. Chad Hagan, managing partner of Hagan Capital Group, confirmed to the publication that negotiations continue as their investor company is one of the many that are seeking to buy and take over the company. If there is a new offer, it will have to be submitted before the company’s hearing on January 20, where a judge will either approve or reject the chain’s reorganization plan.

If the new bid is approved, the deal would put Dov Charney back into a position of power for the company. Charney, former chief executive officer, has been out of the company since he was forced out in late 2014. Since then, he has left the company in turmoil in more ways then one due to his controversial employment. However, the new investment offers with the Hagan-Silver Creek Group seem to be determined to bring Charney back into the picture.

On January 20, provided that American Apparel does not accept any offers, the company will have a chance for reorganization. If the judge approves the retailer’s plan, the company will have an opportunity to move forward from the financial issues they have dealt with in the past. The Creditors’ Committee and American Apparel’s five affiliated debtors have already agreed to the plan in motion, which could very well set the company on a new track for 2016.

Photo: American Apparel