American Apparel’s (APP) new co-chairman Allan Mayer told Reuters on Monday that the fashion retailer is not for sale and that it does not need immediate capital.
“If someone came and said they want to buy American Apparel for $10 per share, we’d be crazy to not listen … but by no means (are we) looking to sell now,” he said in the article.
A separate report from Dow Jones said the company and advisers at Peter J. Solomon Co. are exploring ways to raise more money, including a possible debt or equity offering, a person familiar with the situation said, according to the report.
Among the issues are whether the company could raise fresh debt under its existing credit agreements and whether the company’s move to fire CEO Dov Charney could force it to refinance existing loans, the person said.
APP opened modestly firmer but has declined through much of the session, hitting fresh session lows at $0.61 in late-afternoon action. The stock trades within a 52-week range of $0.46 to $2.09.