American Apparel denies hunt for buyer
american apparel is denying a report by a private equity and deals news website that it’s looking for a buyer.
PeHUB reported on its website Tuesday that the clothing manufacturer was working with adviser Rothschild to explore a sale, citing three people familiar with the matter.
American Apparel is “absolutely not” looking for buyers, Peter Schey, a spokesman for the company, told Reuters.
“The CEO is confident that 2011 will be a turnaround year and he is looking for profitability in 2012 — that’s his goal,” Schey said.
American Apparel has been dealing with a longrunning sales slump. Founder and chief executive Dov Charney has been dealing with problems of his own, including charges that he treated an ex-employee as a sex slave. The peHUB report said it was unlikely any buyer will permit Charney to remain with the company. In a filing last week, American Apparel had warned it may have to file for bankruptcy.