American Apparel appoints financial advisor

Fashion retailer American Apparel has retained investment banking advisory firm Peter J. Solomon Company to

ensure “adequate access to capital”.

The decision to hire a financial and strategic advisor follows last week’s ousting of chief executive Dov Charney which the board of directors stated could trigger “an event of default under its credit agreements” and that it would be in discussions with its lenders for a waiver of the default.

In a short statement, American Apparel’s interim Chief Executive Officer and chief financial officer, John Luttrell said: "We believe the hiring of a financial and strategic advisor at this important juncture is in the best interest of our stockholders and will help maximize long-term shareholder value.

"Although the company currently is on track to meet its previously disclosed 2014 EBITDA, we are pleased to be working with Peter J. Solomon to ensure that we have adequate access to capital in the future at a reasonable cost."