Thornhill’s Michael Serruya is part of a group of investors who recently injected $14.9 million into the struggling American Apparel clothing chain. Before this happened, the retailer’s future was looking increasingly uncertain. A challenging economic climate and rising fabric costs had contributed to poor sales last year, and the clothing chain had already shuttered 13 stores this year.
Serruya and others will have the option of buying more shares, worth nearly $25 million, in the next six months.
“We believe in the American Apparel brand and we believe in Dov Charney,” he said of the move. Serruya has come to the rescue of a financially troubled chain before. In 2009, he invested in Jamba Juice, a U.S. smoothie chain.
“We deeply appreciate this vote of confidence from Michael Serruya and his colleagues,” said Dov Charney, the Montrealer behind American Apparel.
U.S. retailer Target appears to be faring better, with plans to expand into Canada well underway. The first 105 Zellers’ leases it will take over include those at Centerpoint Mall and Hillcrest Mall.
