Dov Charney says American Apparel is not looking for a buyer
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American Apparel Chief Executive Dov Charney is shooting down rumors that the Los Angeles clothing company is looking for a buyer.
‘I’m not surprised that there would be interest in the company, and at times, there has been, but it’s not accurate,’ he said. ‘We’re not looking and it’s not going to happen.’
On Wednesday, private equity blog peHUB said American Apparel had hired adviser Rothschild to help it explore a potential sale as it contends with a falling stock price, citing three sources familiar with the matter. The blog also said it was unlikely that Charney would stay with the company if it were sold.
Rothschild did not return calls for comment.
American Apparel filed its 2010 annual report last week in which the company mentioned the possibility of filing for bankruptcy if business did not improve. It also said it might look for additional financing. A Bloomberg report on Wednesday said the clothing maker may look to raise as much as $8 million.
Shares of American Apparel fell 2 cents, or 2.4%, to 80 cents on Wednesday.
-- Andrea Chang