Vince's Stock Soars After Receiving Rights Offering Commitment Letter

Shares of Vince Holding Corp. shot up 36% in premarket trade Friday, to 45 cents, after the luxury apparel maker said it received a $30 million rights offering commitment letter from Sun Capital Partners V L.P. The letter indicates that Sun Capital will provide Vince with cash proceeds of $30 million in the event that Vince conducts a rights offering of its common stock. Vince shares have plunged amid concerns over a potential bankruptcy filing, after the company said earlier this month that it has "substantial doubt" about its ability to continue as a going concern. The stock, which has traded below $1 since April 28, had lost 92% of its value through Thursday, while the SPDR S&P Retail ETF has shed 7.0% and the S&P 500 has gained 5.7%.