American Apparel Inc. said Friday it received around $80 million in financing from a British private equity firm. The secured notes could give the new investor a stake of about 18 percent stake in the trendy L.A. apparel maker.

American Apparel said it planned to use the loan from Lion Capital LLP to repay outstanding amounts on an existing second lien credit facility with SOF Investments LP-Private IV, an affiliate of MSD Capital. It also plans to reduce the balance of its revolving credit facility, repay a portion of a shareholder note, and fund its working capital needs. The new notes mature Dec. 31, 2013.

Lion Capital focuses on a consumer brands, from designer shoemaker Jimmy Choo to British breakfast staple Weetabix. Lion Capital’s Neil Richardson and Jacob Capps intend to join American Apparel’s board, American Apparel said.

The company’s release didn’t specify whether any of the Lion Capital money would be used to pay back all or part of a $4 loan from Dov Charney, the company’s founder and chief executive. A spokesperson for the company was not immediately available. Charney made the loan last month.

The company renegotiated $120 million in debt with tougher terms nearly three months ago. About $16 million of the debt, owed to the Dell Computer Corp. founder Michael S. Dell comes due next Friday. The New York Times reports the company “was on the verge” of defaulting on the loan if it hadn’t received the new investment.

“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,” Charney said in a statement.

Analyst Todd Slater of Lazard Capital told Reuters he estimates the Lion Capital money should be able to get the company through the next five years.

American Apparel shares jumped 49 cents, or 33 percent, to $1.98 in morning trading on the New York Stock Exchange Alternext.