American Apparel Inc. Chief Executive Dov Charney is shooting down reports that the Los Angeles clothing company is looking for a buyer.
"I'm not surprised that there would be interest in the company, and at times, there has been, but it's not accurate," Charney said. "We're not looking, and it's not going to happen."
On Wednesday, a report on private equity online forum peHUB said American Apparel had hired advisor Rothschild to help it explore a potential sale, citing three sources familiar with the matter. The clothing company has been contending with a falling stock price, sales declines and losses, and last week warned that it might be forced to file for bankruptcy protection if business did not improve.
The peHUB report said it was unlikely that Charney, who is embroiled in two sexual harassment lawsuits filed last month by former employees, would stay with the company if it were sold. Rothschild did not return calls for comment.