Investor Group Offers $300M To Acquire American Apparel

An investor group made up of Hagen Capital Group and Silver Creek Capital Partners has offered to acquire American Apparel Inc. for $300 million, according to a release. American Apparel filed for Chapter 11 bankruptcy in October. The offer includes a $130 million investment from the investor group, comprised of $90 million in new equity and $40 million in a new loan. American Apparel would be managed by PressPlay Group, the private equity arm of PressPlay Global, which is backed by Hagen and Silver Creek. The offer is higher than the company's reorganization plan, the release said, with a valuation range of $180 million to $270 million. American Apparel would exit bankruptcy with about $160 million in new equity and liquidity, $50 million in revolving credit, and $90 million in equity cushion. Dov Charney supports the offer, according to the release. Chad Hagen, managing partner at Hagen Capital Group, called Charney's removal a "shortsighted mistake."