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American Apparel Rejects $300 Million Buyout Offer From Investors Backing Dov Charney

Photo: Andrew Burton/Getty Images

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Another day, another chapter in American Apparel's bankruptcy saga. Bloomberg reports that American Apparel received a $300 million takeover bid from an investor group that would bring ousted founder Dov Charney back to the brand.

American Apparel received this offer the same day that the retailer’s bankruptcy plan was approved by stakeholders, a plan that that would wipe out shareholders including Charney, who is AA's biggest shareholder. The brand filed for bankruptcy in October. Charney was fired in 2014 and has been fighting to get his brand back ever since.

"Dov’s creativity, entrepreneurialism and dedication are the cornerstone of American Apparel," Chad Hagan of Hagan Capital, one of the investors backing the offer, said in the statement. "Removing him from the company’s board and leadership was a shortsighted mistake, and we are seeing the results of this error unfold in the declining performance of the company today."

A hearing is set for Jan. 20 to confirm the bankruptcy plan, and according to the Wall Street Journal, the investor group would need to reach a definitive agreement with American Apparel before that time in order to usurp the current restructuring plan.

"American Apparel evaluates all bids consistently, and in the ordinary course. The company remains focused on pursuing the completion of its financial restructuring following its planned bankruptcy court hearing at the end of this month," an American Apparel spokesperson said in a release.

Update: American Apparel has rejected the $300 million bid from the group associated with Dov Charney, Fortune reports. The bid from the Hagan Group reportedly included $90 million of new equity plus a business plan from Charney that focused on "long-term value, ethical management and preserving American manufacturing jobs," Hagan tells Fortune.

American Apparel, which filed for bankruptcy last year and has not been profitable since 2009, says it would consider a revised bid from the Hagan Group.