- Thomas Alleman
In its bankruptcy petition, American Apparel lists its largest “unsecured creditors” – meaning creditors that loaned the retailer money without getting specific collatoral.
By far, the biggest unsecured creditor is Standard General LP, a hedge fund that’s drawn to “lost causes,” according to The New York Times’ Deal Book.
Standard General formed an unusual alliance with Charney, who was fired as CEO of American Apparel in June 2014 and later forced off the board following years of allegations that he’d engaged in sexual misconduct, the Times noted. The ousted CEO gave the hedge fund control over his 43% stake in the company.
According to a declaration filed in bankruptcy court, Standard General LP has a $15 million claim against the company. American Apparel owes an additional $9.8 million to Standard General Master Fund LP, which has the same address listed as Standard General LP.
The next largest unsecured creditor is the corporate law firm Skadden, Arps, Slate, Meagher & Flom LLP, which has served as outside counsel to American Apparel and was tapped last year to help the retailer restructure its finances.