Name: 1229AmericanApparelTIME-UPDATE
Uploaded: 2014-12-30
Duration: 1 min 34 s
Description: 1229AmericanApparelTIME-UPDATE

It hasn't been a very good holiday season for American Apparel. First, there was the unseemly and expensive ouster of its founder and former CEO, Dov Charney. Then, a holiday discounting strategy that was less than successful, left the retailer strapped for cash. Now, Hedge Fund, Lion Capital, which has lent money to American Apparel ,. Is urging the clothing chain to consider options, including possible sale of the company. The Wall Street Journal was the first to report the news, noting Lion Capital made its case in a letter to American Apparel's board Sunday. Lion Capital has warrants to purchase up to 12 % of the company and the right to nominate two directors to its board. According to the New York Post, the cash- strapped retailer plans to slow down production at its Los Angeles factories to save money and could lead to sharply reduced hours and weeks off for thousands of the company's garment workers in the coming weeks. That would be a particularly big black eye for a company that rides itself on being sweatshop free and manufactured in the U. S.. But late Monday the Post reported American Apparel sent over a written statement disputing the outlets report. " Our employees have been working overtime to meet the holiday demand, and now that the holiday season is over, we plan to adjust shift schedules as we do every January .". All this comes after a preliminary takeover bid by private equity firm Irving Place Capital that valued the LA- based retailer at up to $ 1. 40 a share, or around $ 245 million. An offer the board reportedly believes is far too low.