Courtesy of Benzinga.
American Apparel Inc (NYSE: APP) shares rose sharply Monday after it confirmed getting a $1.30 to $1.40 a share buyout proposition just a day after announcing a shareholder rights plan with a 10 percent trigger.
The retailer and manufacturer was up more than 5 percent recently, changing hands at $1.13.
Although the bidder's identity wasn't disclosed, the New York Post said last week that private-equity firm Irving Place Capital, in concert with former executive Dov Charney, had approached the company.
The company said Monday that it "remains focused on positioning American Apparel for a successful turnaround," but added that it will evaluate the proposal and "takes these matters seriously."
At the same time the company named Colleen B. Brown chairman, replacing Allan Mayer and David Danziger who had served as co-chairmen and who will each remain board members.
Brown joined the board in August.
American Apparel formally fired Charney last week after suspending him as CEO earlier this year for alleged misconduct.
Danzinger noted Monday that the company recently adopted an "updated code of conduct that will serve as an important guide for our company going forward."
American Apparel shares are down more than 8 percent year-to-date amid turmoil and accusations of misconduct against Charney, who was suspended in June. The company named Paula Schneider as chief executive last week.
Posted-In: Dov Charney New York PostNews Management M&A Intraday Update
