BUSINESS

Investors offer to buy ailing American Apparel for $300M, bring back Dov Charney

The Associated Press Published Monday, January 11, 2016 5:15PM EST

In this Dec. 11, 2003 file photo, Dov Charney, senior partner of American Apparel, speaks at a rally at Los Angeles' downtown Plaza. (AP / Reed Saxon, File)

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NEW YORK -- An investor group wants to buy American Apparel for about $300 million and bring back the clothing chain's founder and former CEO Dov Charney.

Charney was fired from American Apparel in 2014 following allegations that he had violated the company's sexual harassment policy. Charney denied those charges.

The investors, Hagan Capital Group and Silver Creek Capital Partners, said Monday that they have submitted a bid.

American Apparel said in a statement Monday that it evaluates all bids and that it is focusing on emerging from bankruptcy protection. The Los Angeles company filed for Chapter 11 bankruptcy protection in October.

Hagan Capital Group and Silver Creek Capital Partners said Charney has a business plan that would improve American Apparel, which has faltered since he left.

American Apparel, which Charney founded in 1998, sells its clothing in 218 stores around the world.