Los Angeles-based American Apparel Inc., which just ousted founder Dov Charney as its chief executive, announced today it has hired an investment banking advisory firm to look at ways to raise capital.
Peter J. Solomon Co. will be working with American Apparel.
“We believe the hiring of a financial and strategic adviser at this important juncture is in the best interest of our stockholders and will helpmaximize long-term shareholder value,” said John Luttrell, American Apparel’s interim chief executive and chief financial officer. “Although the company currently is on track to meet its previously disclosed 2014 EBITDA, we are pleased to be working with Peter J. Solomon to ensure that we have adequate access to capital in the future at a reasonable cost.”
Charney, who owns about 27 percent of American Apparel, has been the target of sexual harassment lawsuits and accused of misusing company money for personal expenses, among other things. The board removed him last week when he refused to resign.
