The wealthy playboy behind American Apparel Inc.'s latest crisis isn't ousted Chief Executive Dov Charney. It's a London financier named Lyndon Lea.
American Apparel told securities regulators Tuesday that Lea's private equity firm, Lion Capital, has formally demanded repayment of the nearly $10 million it lent to the Los Angeles retailer, which carries a sky-high annual interest rate of 20%.
A default could throw the company into bankruptcy by triggering demands for repayment on additional debts. Those debts include a $30-million loan from Capital One and $206 million in senior secured notes — a kind of corporate IOU.
"It's like pulling on a thread of a cheap...