American Apparel is reportedly seeking a sale with the aid of a major financial resource.
The U.S. apparel retailer hired investment bank Houlihan Lokey Inc. to initiate a confidential sale process on Wednesday, Reuters reported.
“As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives,” an American Apparel public statement said.
Reuters contacted Charney about American Apparel’s sale, who is currently forming a new clothing company. Charney told the outlet that he would have to evaluate the asking price first before making a bid decision. In January, he and a group of investors placed a $300 million bid on American Apparel, which was turned down by the company’s current board of directors.
Despite executing a $230 million reorganization plan, American Apparel may still be struggling in today’s competitive retail market. Due to changing consumer demands and e-commerce’s popularity, other mall brands have experienced financial troubles, including Aéropostale, which shuttered most of its U.S. locations this summer.