By
Reuters
Published
Aug 31, 2011
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Top American Apparel investors look to sell shares

By
Reuters
Published
Aug 31, 2011

Aug 30 (Reuters) - A group of private investors led by Canadian financier Michael Serruya and Delavaco Capital is looking to sell its shares in American Apparel Inc just four months after throwing the troubled apparel retailer a $15 million lifeline.

American Apparel
www.Americanapparel.net

The investors are looking to sell 43.2 million shares of the company in a secondary offering which means American Apparel will not get any proceeds from the sale of the shares, according to a regulatory filing by the company.

American Apparel has been dealing with a long-running sales slump, and had even warned that it may have to file for bankruptcy if it does not raise enough money to keep running.

The shares held by the investors represent about 40 percent of the company's outstanding stock on Aug 8, according to Thomson Reuters data.

The group led by Serruya had bought 15.8 million shares for 90 cents each in April and they also had the option to buy another 27.4 million shares for the same price over a six-month period.

The company's shares were up 8 percent at $1 on Tuesday afternoon on the American Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Viraj Nair)

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