(Reuters) - Lion Capital has ordered American Apparel to immediately repay a $10 million loan, after the retailer failed to do so by a July 4 deadline, a source close to the matter said on Monday.
The ousting of American Apparel Chief Executive Officer Dov Charney more than two weeks ago prompted Lion Capital to demand repayment of a loan that was originally due in 2018. Charney allegedly misused company funds and helped spread nude photos of a former employee.
In an unrelated matter, a shareholder named Tammy Federman sued Charney and American Apparel board members, saying they failed to take appropriate, timely actions despite knowing about Charney's misconduct, according to a case filed in a U.S. district court in California on Monday.
A spokesperson for American Apparel declined to comment on the Lion Capital loan and was not immediately available to comment on the lawsuit. Federman's lawyer was not immediately available for comment.
(Reporting By Jeffrey Dastin; Editing by Marguerita Choy)
