American Apparel Rejects Dov Charney-Led Takeover Bid

Updated on
  • Clothing retailer will push forward with lender-backed plan
  • Chain's founder may need favorable court ruling to win control

Dov Charney.

Photographer: Keith Bedford/Bloomberg

American Apparel Inc.’s directors rejected the latest takeover offer involving founder and fired Chief Executive Officer Dov Charney, because he and the funds backing him refused to commit about $130 million needed for the deal to win over objections by the company’s senior lenders.

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