American Apparel, the beleaguered U.S. clothing retailer geared toward teens and young adults, has apparently hired an investment bank to explore a sale, according to Reuters.
Reuters reports that the clothing retailer has hired the firm of Houlihan Lokey Inc to explore a potential sale, citing “people familiar with the matter” in its report.
American Apparel is fresh out of Chapter 11 bankruptcy (six months ago) following the departure of its controversial founder Dov Charney, and faces an uncertain future in an apparel industry increasingly beset by the fast fashion fad and the rise of eCommerce.
The clothing retailer is now owned by its former creditors.
“As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives,” American Apparel said in a statement.
Charney, who was fired as CEO of American Apparel in 2014 after a string of bad headlines and sexual harassment lawsuits, unsuccessfully tried to purchase American Apparel in January of this year for a reported $300 million with the help of investors including Hagan Capital Group and Silver Creek Capital Partners. He told Reuters that he would need to know what the asking price for American Apparel was going to be before mounting another bid.
This is just the latest blow for the teen and young adult retail clothing industry, which has seen at least eight teen apparel retailers file for bankruptcy over the past year, including Aeropostale, Pacific Sunwear of California and Wet Seal Inc.