Racy fashion brand American Apparel turned to safe British firm for survival

When American Apparel arrived in Britain in 2004 it was the coolest and most controversial kid on the block. Its advertising caused outrage and the semi-naked office antics and colourful opinions of founder Dov Charney brought plenty of disapproval. But his clothes earned fervent fans.
At one sale at a London store in April the stampede of shoppers ended with several police officers injured and some bargain hunters being led away in handcuffs.
But the future of the group and its founder is now in the hands of a group of grey-suited investors from a very British firm. Lion Capital, whose office is in Mayfair, first stepped in to lend American Apparel $80 million (about £51 million) in March last year.

Safe: the future of American Apparel and its founder Dov Charney is in the hands of a group of grey-suited investors from a very British firm

Since then, the clothing and Charney 41 of difficulties. Last month, the auditor deloitte resignation, issued a statement said it had found in American apparel weaknesses, its history of financial control can be traced back to the last year.
On Tuesday, the United States said in a statement it dress to evaluate the financial crisis in depth, it is not sure it's enough to make future liquidity, 12 months.


It from $83 million debt, $91 million in December to march will admit it would break the terms of the loan.
These provisions means lion may require the debt into an 18% of the shares, but American apparel stock has in the past year, and the company's value of $5.4 billion dollars.
Its debt conversion would immediately paper losses of the lion.
The company's loan Charney, looks like a lion capital of successful transactions. When it made loans, Neil Richardson, one-third of the lion, cofounders said: "we are very glad to have the opportunity to Dov and management team in American apparel brands. Strong growth, in the past few years is the visual and business acumen Dov '
Observers are now wondering whether Richardson and his cofounders, Lyndon Lea and Richard Darwent, should have steered clear of the maverick Charney, who established the firm in 1989.
He now runs the biggest clothing factory in the US and in 2008 gave $25 million of company shares to workers. The group has 280 stores, 14 of them in the UK, and crucially Charney still holds a 53 per cent stake.
But the antics have Charney him and his appalling. Although he has been successfully saw a series of unconfirmed sexual harassment, he has admitted an unusual way of management, including at least hold a staff meeting naked except sock (not in his feet).
He acknowledges that, in the office, he often ambulating underwear - by American apparel -- and, of course, by his company to use "whore" fashion model.
His approach to marketing have boundaries. Last September here launched a campaign is banned, because it said the asa proposed including a girl, it all looks are under the age of 16, although the company's vows, the 23-year-old model.
Last year, the filmmaker woody Allen successful prosecution for usd 3.3 million American apparel, in his image in the cases without permission of the advertising.
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Charney is an odd partner for Lion, which has developed a reputation as a canny investor. It owns fish-fingers maker Findus and Weetabix and has owned Kettle crisps and shoes company Jimmy Choo. And in the latest sign of its business acumen it is in the process of selling restaurant firm Wagamama for £230 million, more than twice what it paid five years ago.