American Apparel gets hedge fund bailout

USA Today – American Apparel (APP), the struggling maker of clothes until recently led by controversial founder and former CEO Dov Charney, got a new thread of life after hedge fund Standard General said it will give $25 million in financial backing to the company.

The lifeline is much needed by the company, which continues to lose money and burn cash at a staggering pace. Standard General requires American Apparel’s board to be largely replaced and a board appointed to investigate alleged wrongdoing by Charney. Five of the seven board members, including Charney, will resign.

Read Complete Article

This entry was posted in Syndicated. Bookmark the permalink.

Leave a Reply