American Apparel LLC, the U.S. teen clothing retailer known for its sexually suggestive advertising, has hired investment bank Houlihan Lokey Inc to explore a sale, people familiar with the matter told Reuters on Wednesday. The announcement comes just six months after American Apparel emerged from Chapter 11 bankruptcy and ousted its controversial founder and chief executive officer, Dov Charney.
"As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives," American Apparel said in a statement.
Charney was fired as CEO of American Apparel in 2014. The company cited inappropriate behavior and misuse of company funds. In March, American Apparel named the former head of handbag retailer Liz Claiborne Inc, Paul Charron, as chairman of its new board of directors.