Even after former American Apparel CEO Paula Schneider stepped down, rumors still are swirling about the company’s interest in a sale. Now, there might be even more credibility to those rumors.
Brand licensors, such as Authentic Brands Group LLC and Iconix Brand Group Inc., have expressed interest in acquiring American Apparel.
The stars could align perfectly for an interested buyer—Reuters reported that negotiations could lead to American Apparel filing for bankruptcy again. If that happened, the buyer could purchase the company while leaving behind liabilities, including the companies’ storefronts, worth tens of thousands of dollars.
Sources close to the potential sale told Reuters that they’re not sure that any of the current, early-stage talks will result in a sale, or that any deal would be contingent on a bankruptcy filing.
While spokespeople from American Apparel declined to comment, and the sources chose to be anonymous, one man did speak up on the matter—American Apparel’s founder and former CEO, Dov Charney.
“I’m saddened to hear the news,” Charney said, according to Reuters. “I think it could be devastating for the Los Angeles community.”
Charney is referencing the possibility that, at the rate things are going right now, American Apparel may move its factories outside of Los Angeles, where it’s been since its inception. It previously has hinted at the possibility of outsourcing certain production responsibilities to other parts of the U.S., but it would continue to manufacture in the U.S. Charney’s concern is that a sale to a licensor could result in plant closures and unemployment for the company’s more than 4,600 employees.
