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
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
● Harley-Davidson is recalling 66,421 Touring and CVO Touring motorcycles from the 2014 model year because their front wheels can lock up without warning. Motorcycles with anti-lock brakes built between July 1, 2013, and May 7, 2014, are included in the recall. Harley-Davidson said the front brake line can get pinched between the fuel tank and the frame. The company knows of five crashes and two minor injuries related to the defect.
● The Transportation Department said 76.9 percent of U.S. airline flights arrived on time in May, down from 79.6 percent in April and 79.4 percent in May 2013. Hawaiian Airlines and Alaska Airlines, which get good weather on many routes, ranked best. Fliers filed 1,010 complaints with the government against U.S. airlines in May, up from 720 a year earlier. About half involved flight delays and cancellations.
● The financial literacy of American teenagers is no better than average compared with their peers in other countries, and nearly 1 in 5 lacks basic proficiency, according to a new study. The report by the Organization for Economic Cooperation and Development analyzed financial knowledge among 15-year-olds in 18 nations. Teenagers in China, Belgium and Estonia fared the best. U.S. teens were ninth, with an overall numerical ranking that was slightly below average.
● Bookstore chain Barnes & Noble pledged to make its stores friendly to nursing mothers as part of a settlement with New York state after a woman who was breast-feeding was asked to cover herself or leave one of its locations. The agreement, announced by New York state’s attorney general, Eric Schneiderman, called for Barnes & Noble to educate its employees about the chain’s policies on public breast-feeding and to strengthen customer complaint procedures. The company will also donate $10,000 to Rockland County’s Breastfeeding Promotion and Support Program.
— From news services
● 8:30 a.m.: Weekly jobless claims.
● 10 a.m.: Weekly mortgage rates and wholesale trade for May.
● Earnings: Family Dollar Stores.