The retail company will keep its name, and founder and CEO Dov Charney will remain its chief executive. Endeavor executives expect to trade the locally based retailer on the American Stock Exchange or some other national stock exchange.
American Apparel operates 143 units in 11 countries. The retailer is on track to bring in sales of $275 million by year's end and EBIDTA of $30 million.
"This transaction and the infusion of substantial capital from Endeavor will allow American Apparel to capitalize on the many opportunities in front of us ranging from improving our manufacturing processes to implementing our global growth plans," says Charney in a statement.
American Apparel has opened about 90 locations in the past two years, and published reports say that Endeavor plans to grow the chain to 800 stores worldwide. In addition to provocative advertising, the retailer is known for producing its apparel in non-sweatshop environments and paying its employees higher-than-average wages.
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