The sources told Bloomberg the terms, which will not be made public, include new stock warrants and could be worth as much as $40 million.
On April 1, the clothing company submitted it's regulatory filings to the U.S. Security and Exchange Commission earnings report, where it claimed an $86.3 million net loss and indicated it may need to file for bankruptcy protection if revenue did not increase. A week later, Reuters reported rumors that American Apparel was looking for a buyer. The investment should ease concerns and enable the company to remain stable.
- Companies:
- American Apparel
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.