Photo: American Apparel
The debt-laden, controversial, American-made clothing chain reportedly has a new financial backer to bail it out: George Soros.From the New York Post’s James Covert:
The billionaire octogenarian — who, like American Apparel’s controversial CEO Dov Charney, has lately been entangled in lawsuits with young, beautiful women — is backing a firm that’s in talks to extend a credit line worth as much as $80 million to the cash-strapped clothing chain, The Post has learned.
The credit facility from Crystal Financial, a Boston-based firm that boasts Soros’ hedge fund as its lead investor, will immediately replace and expand a $75 million revolving credit line from Bank of America that matures in July, sources said.
Specific terms of the credit agreement couldn’t be learned, but it will be “long term,” albeit at a higher interest rate than at the Bank of America facility, according to a source briefed on the negotiations. The deal could be finalised as soon as this week.