Investor Burkle Buys Into American Apparel
Since June 10, billionaire investor Ronald Burkle has scooped up $5.9 million worth of stock in Los Angeles–based vertical manufacturer and retailer American Apparel.
His purchases, detailed in a June 24 filing with the Securities and Exchange Commission, make him the second-largest individual shareholder in the publicly traded company, after founder Dov Charney, who controls 38.1 million shares. Burkle’s 4.3 million shares represent a 6 percent stake in the company. The next closest investor, Fidelity International, owns 5.1 percent of the apparel maker’s shares, valued at $3.6 million.
In his SEC filing, Burkle stated that he purchased the American Apparel stock solely for investment purposes because he considered it to be undervalued by the market at the time they were acquired. American Apparel’s stock closed June 24 at $1.77 per share, down 43 percent year-to-date.—Erin Barajas
