Hedge fund icon George Soros reportedly is in talks to help save struggling retailer American Apparel (AMEX:APP).
According to the New York Post, Soros-backed Crystal Financial could step in this July when a $75 million credit line from Bank of America (NYSE:BAC) is set to mature, and possibly offer as much as $80 million in credit.
The Post also said British-based Lion Financial approved of the deal. Lion previously blocked an attempt by an American billionaire to take over BAC’s deal.
The company has watched earnings plummet into losses for the past couple years, and December earnings came short of a $20 million goal set by CEO Dov Charney, though improved same-store sales in the first two months of the year are taking pressure off the possibility of a bankruptcy.
American Apparel traded under $1 for most of 2011 and throughout 2012, and dropped near 50 cents late last year — a steep fall from its 2007-08 heydays around the $15 mark. APP stock gained more than 20% yesterday on the news to finish around 91 cents per share.
The full New York Post report can be viewed here.