About a year ago, Dov Charney was still trumpeting his intentions to come back to the company he founded, taking meetings with the heads of American Eagle Outfitters and SB Capital Group about a possible takeover bid. In the ensuing time, the company has endured an embarrasing piñata-related incident and announced plans to file for bankruptcy. Today, Bloomberg Business reports that two groups of investors, Hagan Capital Group and Silver Creek Capital Partners, have presented a $300 million takeover bid that they say would save the retailer from bankruptcy. The only catch? They want to bring back Charney.
“Dov’s creativity, entrepreneurialism and dedication are the cornerstone of American Apparel,” said Hagan Capital managing partner Chad Hagan.“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.” (Well, he certainly would never have approved this PowerPoint,that’s for sure.)
Will American Apparel take the bait? Stay tuned, because we have a feeling there will be a lot more twists to this story.