"As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives," American Apparel, which is now owned by its former creditors, said in a statement.
When contacted for comment, Charney said he would have to see what the asking price for his old company is before considering making a bid. He added that he is working on setting up a new apparel company.
Charney, with support from investors that included Hagan Capital Group and Silver Creek Capital Partners, had mounted an unsuccessful $300 million bid for American Apparel in January.
Houlihan Lokey declined to comment.
Charney was fired as CEO of American Apparel in 2014. The company cited inappropriate behavior and misuse of company funds.
In March, American Apparel named the former head of handbag retailer Liz Claiborne, Paul Charron, as chairman of its new board of directors.
Teen clothing retail has been hit by the growing popularity of online shopping. At least eight teen apparel retailers have filed for bankruptcy this year amid fierce competition and stagnating sales, including Aeropostale, Pacific Sunwear of California, The Wet Seal.
News and data provider Reorg Research first reported on American Apparel working with Houlihan Lokey on a sale.