Lion Capital, the hedge fund that formerly backed American Apparel Inc., urged the clothing chain to consider strategic alternatives such as a sale of the company, Bloomberg News reported today. American Apparel received a letter from Lion yesterday asking the retailer to form a special committee to review its options. Lion also said that it plans to name founding partner Lyndon Lea to American Apparel’s board instead of previous nominee Gene Montesano, one of the entrepreneurs behind Lucky Brand Jeans.
