Los Angeles-based American Apparel, which just replaced founder and chief executive Dov Charney, announced Monday that it received a buyout offer for $1.30 to $1.40 per share.
An offer of $1.40 per share is roughly 30 percent higher than Friday’s closing price. The stock was trading around $1.08 per share today.
“The board takes these matters seriously, and it will evaluate this proposal in the ordinary course of business,” according to an American Apparel statement. “The company remains focused on positioning American Apparel for a successful turnaround.”
In a related development, Allan Mayer and David Danziger have stepped down as co-chairmen of the board and will be replaced by board member Colleen B. Brown.
Mayer and Danziger will continue to serve on the board and retain their positions as chairs of the compensation and audit committees, respectively.
“I look forward to building on the momentum we’ve achieved at American Apparel with the addition of strong leadership at the company this year, bringing on Hassan Natha as chief financial officer and Chelsea A. Grayson as general counsel,” Brown said.
Last week, fashion industry veteran Paula Schneider was hired to replace Charney. She has served as president or senior officer of Warnaco, Gores Group, BCBG Max Azria and Laundry by Shelli Segal.
— City News Service