American Apparel Jumpstarted by New Credit ReportMonday, March 12, 2012
A report that American Apparel could land an $80 million credit line sparked a rally in the company’s stock.
A New York Post story Monday stated that an offer from Crystal Financial, a Boston firm backed by billionaire George Soros’ hedge fund, would replace and extend a current $75 million revolving credit line from Bank of America that matures in July. The newspaper did not name its source for the information.
Based in downtown Los Angeles, clothing manufacturer American Apparel warned investors last April that it might go bankrupt. Despite improving sales as the year progressed, the company reported a loss of $48 million or 56 cents per share for fiscal 2011.
So far this year, same-store sales have increased 11 percent in both January and February, the company said in monthly sales updates.
In mid-morning Monday on the Nasdaq, shares were trading at 85 cents, an increase of 10 cents or 13 percent.