American Apparel draws acquisition interest

Image: vmiramontes / CC BY 2.0

Beleaguered American Apparel is attracting attention from brand licensors interested in acquiring the name.

Authentic Brands Group and Iconix Brand Group are among those interested in acquiring the retailer, reported Reuters

RELATED: American Apparel could be for sale

None of the companies commented on the talks, but people close to the matter said that the negotiations could lead to American Apparel filing for bankruptcy again in order to shed leases and liabilities. 

American Apparel operates more than 200 stores and has manufacturing facilities in California, although it has been exploring other locations in the United States to reduce costs. 

This would be its second filing in as many years. American Apparel filed Chapter 11 in October 2015 and exited in February as a privately held company. 

But in September, CEO Paula Schneider resigned as the company explored a sale of some or all of its business. Schneider hinted at a difference of opinion regarding the sale options and subsequent strategy.

RELATED: American Apparel's Paula Schneider has a new gig

Schneider was succeeded by Chelsea Grayson. Her departure follows that of chairman Paul Charron, who previously served as CEO at Liz Claiborne.

It's another troubled chapter for the retailer, which has weathered scandals and a colorful founder who never gave up on first taking back his business and is now launching a new operation to rival the one he founded. 

"I'm saddened to hear the news," founder and former CEO Dov Charney told Reuters. 

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