A year after he was officially dismissed from American Apparel, Dov Charney hasn't given up on saving the company he founded.
On Friday, Bloomberg and other outlets reported that Charney has hired Cardinal Advisors LLC to "evaluate options" for a potential bid to buy back the flailing brand. Despite releasing a turnaround plan in June, American Apparel is still struggling to get its sales back on track: In early October, the retailer filed for chapter 11 bankruptcy protection and estimates for its third quarter sales released last month show that it lost about $18.76 million during the period, with net sales totaling just $126.1 million — a 19 percent decrease relative to the year prior.
Reps for American Apparel, Cardinal Advisors and Charney did not immediately respond to request for comment. Though any offer is still in its very early stages, we'll be watching this space.
Update: David Felman, a partner at Cardinal Advisors, has confirmed that the firm is advising Charney on "alternative strategic solutions" for American Apparel. A spokesperson for American Apparel emailed us with the following statement: "We can confirm that there is currently no transaction to consider and that Mr. Charney has submitted nothing more than an indication of interest. American apparel evaluates all indications of interest consistently, and in the ordinary course."