American Apparel in talks with investor to secure up to $10 million in new financing

American Apparel Inc.?s recent efforts to secure new financing appear to be making progress.

The Los Angeles clothing maker has held talks with an investor who has expressed interest in providing money for the company, according to the Wall Street Journal, which said the potential investor?s identity could not be determined. The money -? up to $10 million ?- would come in the form of equity, the Journal said.

When reached Monday, American Apparel Chief Executive Dov Charney declined to comment.

The troubled clothing company said in its annual report last month that it was looking at several options to turn its business around. It said it had hired a financial advisory firm to explore other sources of capital and planned to renegotiate a number of real estate leases, which could result in store closures.

-- Andrea Chang

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