Retailers, consumers and prices
Check Out Line: American Apparel’s British invasion
Check out the Lion’s share of American Apparel.
OK, so it’s not getting majority ownership. Still, American Apparel, known for bright tees and sultry advertising, said Lion Capital LLP invested $80 million.
“In light of unprecedented market conditions, we believe Lion Capital‘s investment serves as a strong endorsement of our company and the tremendous potential of our brand,” said American Apparel founder and CEO Dov Charney.
American Apparel shares, which trade on the AMEX, shot up almost 33 percent to $1.98 in morning trading.
Lion Capital, based in London, gets to bring two people onto the board. It also gets warrants for shares, that if converted into common stock, would give the firm about an 18 percent stake in the clothing retailer.
Lion Capital previously invested in brands such as Jimmy Choo.
Also in the basket:
Sara Lee Weighs Sale of European Business (WSJ)
Estee Lauder’s Dan Brestle to Retire (WWD, subscription required)