Second largest American Apparel shareholder cashes out most of stake

|By:, SA News Editor

American Apparel’s (APP) second-largest shareholder, FiveT Capital, has sold about 16.5M shares in the company, reducing its stake from 12.5% to 3.2%.

Johannes Minho Roth, founding partner of FiveT Capital, stated his concerns of the company's ability to pay bondholders (who hold about $210M of company debt), following the the ousting of CEO Dov Charney.

Lion Capital, a long-term lender of American Apparel, has already called in a $10M loan which is due today.