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American Apparel Rejected $300M Takeover Bid Backing Dov Charney

American Apparel does not want Dov Charney to return.

The bankrupt retailer’s board rejected a $300 million takeover bid from investors aligned with its fallen founder, two people familiar with the matter told Bloomberg on Thursday.

Earlier this week, Hagan Capital Group and Silver Creek Capital Partners offered to buy American Apparel and bring back Charney, who was fired for cause in December 2014, noting that his “leadership and vision” are central to the company’s long-term viability. Their proposal included $90 million of new equity and a $40 million term loan.

The board said no, but is reportedly open to receiving a revised offer. The investors had previously submitted a proposal valued at $200 million.

But Charney is running out of time to regain control of the company he founded in 1989. On Jan. 20, American Apparel will appear before a bankruptcy court in Delaware to seek approval of its reorganization plan, which has obtained approval from most of its stakeholders.

Under the plan, the Los Angeles-based company would be taken over by its largest bondholders, including Monarch Alternative Capital. But Hagan Capital Group and Silver Creek Capital Partners have argued that their acquisition proposal, which includes reinstating Charney, is better for business.

“The historical record on this is clear at this point: the company is a far less profitable business than it was under Mr. Charney’s tenure as chairman and CEO and the company’s sales and EBITDA only continue to deteriorate further under the new regime,” Chad Hagan, managing partner at Hagan Capital Group, said Monday. “Dov’s creativity, entrepreneurialism and dedication are the cornerstone of American Apparel. Removing him from the company’s board and leadership was a shortsighted mistake and we are seeing the results of this error unfold in the declining performance of the company today.”

Worth nearly $1 billion at its peak in late 2007, American Apparel hasn’t turned a profit since 2009 and filed for Chapter 11 in October. For the nine months ended Sept. 30, the once-popular clothing chain lost $65 million on sales of $385 million.