July 7 Lion Capital has ordered American Apparel to immediately repay a $10 million loan, after the retailer failed to do so by a July 4 deadline, a source close to the matter said on Monday.
The ousting of American Apparel Chief Executive Officer Dov Charney more than two weeks ago prompted Lion Capital to demand repayment of a loan that was originally due in 2018. Charney allegedly misused company funds and helped spread nude photos of a former employee.
A spokesperson for American Apparel declined to comment. (Reporting By Jeffrey Dastin; Editing by Marguerita Choy)