American Apparel turns down take-over bid

American Apparel turns down take-over bid

Fashion company American Apparel has turned down a take-over bid from Iriving Place Capital because the company's management deemed it as much too low. It received the bid shortly after it had decided to part ways with its founder.

Worst time imaginable to sell

Officially, American Apparel's board is still examining the bid, with no decision expected until January. Nevertheless, sources have told Reuters that the bid is way too low, while American Apparel has said it is not looking for a buyer.

 

The source has told Reuters "this is the worst time imaginable to sell the company as it is on the verge of turning around and realizing its true value". The company will only consider a bid if it is several times higher than what Irving Place Capital was willing to give, namely 50 % above its current share value, worth some 200 million euro.

 

The company still has to deal with the possible consequences of founder Dov Charney's departure: he has threatened to sue the company and demand a severance package. Currently, he still owns 43 % of the company, but that is managed by Standard General as collateral for a loan.

 

When Irving Place Capital's bid became public, some thought Dov Charney was pulling the strings and that he would be reinstated as American Apparel's CEO if the bid was accepted. That rumour was quickly denied however.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top