American Apparel, the largest clothing manufacturer in the United States, said Friday it received a private investment of about 80 million U.S. dollars from Britain that would help it keep from financial troubles in the next five years.
The secured notes could give Lion Capital LLP, a British private firm, a stake of 18 percent stake in American Apparel, according to the Los Angeles-based trendy apparel maker.
American Apparel said it planned to use the new loan to repay its outstanding financial liabilities and fund its working capital needs.
The company renegotiated 120 million dollars in debt with tougher terms nearly three months ago. About 16 million dollars of the debt, owed to Dell Computer founder Michael Dell, comes due next Friday.
Media reports said earlier that American Apparel was on the verge of defaulting on the loan if it hadn't received the new investment. The new loan will mature on Dec. 31, 2013.
"This investment provides us with a long-term solution for our capital structure and an enhanced ability to grow our brand both domestically and internationally over the coming years," company founder and chief executive Dov Charney said in a statement.
While most other U.S. garment makers base their production overseas to take advantage of lower labor costs, American Apparel has been reluctant to outsource its manufacturing jobs. Its factory in downtown Los Angeles boasts the largest single garment factory in the United States with over 4,000 workers.
The secured notes could give Lion Capital LLP, a British private firm, a stake of 18 percent stake in American Apparel, according to the Los Angeles-based trendy apparel maker.
American Apparel said it planned to use the new loan to repay its outstanding financial liabilities and fund its working capital needs.
The company renegotiated 120 million dollars in debt with tougher terms nearly three months ago. About 16 million dollars of the debt, owed to Dell Computer founder Michael Dell, comes due next Friday.
Media reports said earlier that American Apparel was on the verge of defaulting on the loan if it hadn't received the new investment. The new loan will mature on Dec. 31, 2013.
"This investment provides us with a long-term solution for our capital structure and an enhanced ability to grow our brand both domestically and internationally over the coming years," company founder and chief executive Dov Charney said in a statement.
While most other U.S. garment makers base their production overseas to take advantage of lower labor costs, American Apparel has been reluctant to outsource its manufacturing jobs. Its factory in downtown Los Angeles boasts the largest single garment factory in the United States with over 4,000 workers.
