In a private financing transaction nearing a close, American Apparel Inc will be receiving a substantial $80 million investment from Lion Capital LLP, in secured second lien notes, with detachable warrants, that would mature on December 31, 2013.

The Los Angeles, California-based American Apparel is a vertically-integrated producer, distributor, and retail vendor of branded fashion-wear. In addition, the company operates an apex wholesale business, supplying first-rate T-shirts and other informal wear to distributors and screen printers. Furthermore, American Apparel also has an online retail e-commerce website to facilitate its widespread operations.

American Apparel - which has nearly 10,000 employees, as of the most recent February 28, 2009 figures - operates over 260 retail stores. The company has a marked presence in 19 countries, namely the US, Canada, Brazil, Mexico, UK, France, Germany, Austria, Belgium, Italy, the Netherlands, Spain, Sweden, Switzerland, Australia, Japan, South Korea, China, and Israel.

According to American Apparel founder and CEO, Dov Charney, a partnership with Lion Capital would help the company in its continuing endeavor to develop into a top-grade global apparel brand. Charney added: "We are excited that Lion Capital has decided to make a substantial investment in American Apparel. In light of unprecedented market conditions, we believe Lion Capital's investment serves as a strong endorsement of our company and the tremendous potential of our brand."