American Apparel Received Interest To Acquire The Company

MarketWatch Pulse

American Apparel Inc.'s stock rallied 7.5% in premarket trade Monday, after the apparel company said it has received an "indication of interest" to acquire the company for $1.30 to $1.40 a share. That represents a premium of 21% to 31% to Friday's closing price of $1.07. "The board [of directors] takes these matters seriously, and it will evaluate this proposal in the ordinary course of business," the company said in a statement. "The company remains focused on positioning American Apparel for a successful turnaround." The company also said Allan Mayer and David Danziger have stepped down as co-chairmen of the board, and that it has named Colleen Brown as the chairperson. The stock soared 44% on Dec. 18 after the company said it fired suspended Chief Executive Dov Charney, who had been suspended for alleged misconduct. The stock has lost 13% this year through Friday, while the S&P 500 has gained 12%.

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