World News: 21:58 GMT Friday 27th June 2014. [Stock Market via SPi World News]
Lion Capital has asked American Apparel to repay a $10 million loan four years early after the retailer ousted its founder and CEO Dov Charney on June 18, said a source close to the matter Friday. Allan Mayer, co-chairman of American Apparel's board, says that talks with Lion Capital are ongoing "but if they do decide to call the loan, we have sufficient capital to pay it off." American Apparel shares rose 30 percent on Friday to close at 97 cents on the American Stock Exchange, the highest level since February. "I think Wall Street is betting right now that Dov does not come back." Lion Capital, a British investment firm that focuses on the consumer sector, has made no public statement on the loan. "Lion is either looking for an exit strategy, or it is looking for Dov to come back," said Eric Beder, an analyst who specializes in retail and consumer products for Brean Capital.
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