American Apparel receives financing

American Apparel announced late Wednesday that it reached a deal with investment firm Standard General for up to $25 million to bolster the clothing chain’s finances. It will also mean a shake-up on the board.

The agreement will help pay off a $10 million loan from investment firm Lion Capital, which made a formal demand for payment Monday. Lion Capital claimed that American Apparel defaulted under its credit agreement because the Los Angeles-based clothing chain ousted its founder and chief executive, Dov Charney.

As part of the shake-up of the board, five of its seven members, including Charney, will voluntarily step down. The board will continue to be led by its current co-chairmen, David Danziger and Allan Mayer.

On June 18, American Apparel’s board fired Charney as chairman and suspended him as president and chief executive. His contract required a 30-day period before he can be terminated. The board cited “alleged misconduct.” The new pact calls for an independent board committee to be formed to oversee the continuing investigation into alleged misconduct by Charney.

— Associated Press

Competitor weighs in on Comcast deal

Comcast’s purchase of Time Warner Cable “presents serious competitive concerns” and should be denied, Dish Network told U.S. regulators.

“There do not appear to be any conditions that would remedy the harms that would result from the merger,” Jeffrey Blum, senior vice president and deputy general counsel for the company, said in a filing Wednesday with the Federal Communications Commission. Dish executives, including Chairman Charlie Ergen, met with the commission Monday.

The FCC is considering Comcast’s $45.2 billion proposal, made in February, to acquire Time Warner Cable. The deal would combine the two largest U.S. cable companies and give the enlarged Comcast about 30 million subscribers.

A Comcast spokeswoman, Sena Fitzmaurice, said every market the company operates in is highly competitive. “Dish has long been one of our most vigorous competitors, and unlike us has a national footprint available in tens of millions of more homes than a combined Comcast-Time Warner Cable,” she said in an e-mailed statement.

A plan by AT&T to buy ­DirecTV for $48.5 billion also “presents competitive concerns,” Dish said in the FCC filing.

— Bloomberg News

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