Bankrupt teen apparel retailer American Apparel’s (APP) board has rejected the latest takeover offer involving the company’s controversial founder, Dov Charney, a source told Reuters.

Earlier this week, the Los Angeles-based company received a $300 million bid from a group of investors who are backing the return of Dov Charney.

Hagan Capital Group and Silver Creek Capital Partners said their proposal included $90 million of new equity and a $40 million term loan, and backs a business plan from Charney, who was fired as chief executive in December 2014.

American Apparel is open to a revised offer from the funds, the source said.

Bloomberg reported the news first on Thursday.

Chad Hagan from the Hagan Capital Group said they are confident that American Apparel will accept their “superior business model that centers on long term value, ethical management and preserving American manufacturing jobs.”

Silver Creek Capital Partners were not immediately available for comment. Representatives of Dov Charney declined to comment.

American Apparel, which has not been profitable since 2009, filed for bankruptcy in October, joining a list other teen-focused retailers including Wet Seal and Body Central Corp that have struggled with changing tastes.

Charney founded American Apparel in 1989, but was fired in December for allegedly misusing company funds and failing to stop a subordinate from defaming former employees. He has denied the allegations.