American Apparel is on the block and is in the midst of seeking a buyer for the firm, having hired Los Angeles investment bank Houlihan Lokey in that effort, Retail Dive reported.
The outlet, sourcing Los Angeles Times, stated that the firm has seen a number of management changes, most visibly as CEO Paula Schneider has stepped down, effective as of next month. She will be replaced by Chelsea Grayson, who has been the firm’s general counsel for two years. At least one observer, Lloyd Greif, chief executive officer of investment banking outfit Greif & Co., stated to L.A. Times that Grayson’s relative lack of retail experience shows that American Apparel is effectively waiting for a buyer. The company’s decision to sell comes after its emergence from bankruptcy last year came rather quickly, according to Greif.
Retail Dive noted in its own analysis that “fast fashion, changing consumer tastes and priorities and fatigue around American Apparel’s highly sexualized marketing have taken a toll on the retailer” and that turnaround efforts never took root. Founder and Former CEO Dov Charney seems to have stepped away from efforts to re-establish himself as the firm’s leader and also told Retail Dive that he would want to see asking prices and other details about the state of the company before stepping in again and perhaps making an offer to buy the company.
Retail Dive speculated that Chapter 11 may indeed loom again for the company, and other possible buyers might include Iconix Brand Group or Authentic Brands Group, among others.
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