American Apparel creditor demands loan repayment

Lion Capital has asked American Apparel to repay a $10 million loan four years early after the retailer ousted its founder and CEO Dov Charney on June 18, said a source close to the matter Friday.

"Lion is either looking for an exit strategy, or it is looking for Dov to come back," said Eric Beder, an analyst who specializes in retail and consumer products for Brean Capital, according to Fox Business.

The investment firm has made no public statement about why it is calling for loan repayment early. American Apparel said it has sufficient capital to pay back the loan if they do decide to call it.

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