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Has American Apparel rejected the 300 million dollar takeover bid from Dov Charney ?

By Vivian Hendriksz

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Fashion

As Dov Charney continues to battle to find his way back into his beloved American Apparel with a 300 million dollar bid, rumour has that the now bankrupt teen retailer has rejected the offer.

The company board has reportedly voted against the latest takeover offer involving Dov Charney from investor group Hagan Capital Group and Silver Creek Advisors, according to sources close to the matter claims a report from Bloomberg on Thursday evening. The news comes not long after American Apparel announced that it had obtained unanimous approval for its reorganization plan.

Has the board at American Apparel refused Charney's 300 million US dollar offer?

However, another report from WWD claims that Charney has yet to receive any form of a formal rejection from American Apparel, and that a previously scheduled meeting between the apparel retailer and the Hagan-Silver Creek Group was dissolved. "This is not over," said Charney, whilst Chad Hagan, managing partner and group president of Hagan Capital stressed that discussions where still going on.

"Negations are ongoing and we are confident that American Apparel will accept our superior business model that centres on long-term value, ethical management and preserving American manufacturing jobs," added Hagan in a statement. However, if the board at American Apparel has indeed rejected the offer from the investor group, then the investor group still has two options to pursue.

Either the Hagan-Silver Creek Group would have to hand in a revised bid for American Apparel, and Charney is confident that the group is willing to rise it offer, or wait January 20 when a judge will rule on American Apparel's bankruptcy plan so the court can make a decision on the matter.

The 300 million US dollar offer, which was officially announced on Monday, would see Charney return to the company he was ousted from in December, 2014, for violating a series of terms in his contract, stated the company. Since then Charney, and several senior former American Apparel employees, have contended that his removal from American Apparel was part of a larger scheme to bankrupt it and sell it off.

American Apparel
Dov Charney
hagan silver creak group