American Apparel Inc. creditor Lion Capital LLP is demanding immediate repayment of a $10 million loan after the two sides failed to reach an agreement, a person with direct knowledge of the situation said.
The London-based private-equity firm is giving notice to American Apparel that the loan payment is being accelerated, a process set in motion by last month’s ouster of chief executive officer Dov Charney, said the person, who asked not to be identified because the matter isn’t public. Lion would prefer to see Charney reinstated as CEO of the company, which he founded and built into a global retail chain, the person said.
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