American Apparel Announces Proposed Public Offering of Common Stock

  American Apparel Announces Proposed Public Offering of Common Stock

Business Wire

LOS ANGELES -- March 25, 2014

American Apparel, Inc. (NYSEMKT:APP) (the “Company”) announced today that it
has commenced an underwritten public offering of $30,500,000 of shares of its
common stock. The Company intends to use the net proceeds of the offering to
fund working capital and for general corporate purposes, including its April
2014 cash interest payment on the Company’s senior secured notes.

The Company intends to grant the underwriters a 30-day option to purchase up
to $4,575,000 of additional shares of its common stock to cover
over-allotments, if any. The Company’s common stock is listed on the NYSE MKT
under the symbol “APP.”

Roth Capital Partners is acting as sole book-running manager and Brean Capital
is acting as co-manager for the offering.

The shares of common stock will be issued pursuant to an effective shelf
registration statement on Form S-3 previously filed with the Securities and
Exchange Commission (“SEC”). Copies of the preliminary prospectus supplement
and the accompanying prospectus related to the offering may be obtained from
Roth Capital Partners, Attention: Equity Capital Markets, 888 San Clemente
Drive, Newport Beach, CA 92660, (800) 678-9147.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state or other jurisdiction.

Cautionary Statement about Forward-Looking Statements

This release contains forward-looking statements, including statements about
the offering and use of proceeds. Such forward-looking statements are based
upon the current beliefs and expectations of the Company’s management, but are
subject to risks and uncertainties associated with market conditions and the
satisfaction of closing conditions related to the proposed offering, as well
as the risks and uncertainties described in the Company’s filings with the
SEC, which could cause actual results and/or the timing of events to differ
materially from those set forth in the forward-looking statements, including,
among others, whether or not the Company will ultimately consummate the
offering of common stock on the terms set forth in this release or at all, the
timing and amount of proceeds of any such offering and if any such offering is
consummated, the uses of proceeds of the offering. All forward-looking
statements are qualified in their entirety by this cautionary statement and
speak only as of the date of this release, and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.

Contact:

American Apparel, Inc.
John J. Luttrell
Chief Financial Officer
(213) 488-0226
 
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