Buyer interested in American Apparel; board names new chair

Los Angeles – Change is occurring at American Apparel Inc., and it may be coming from external as well as internal sources. The board of directors of American Apparel has confirmed that it has received an indication of interest to acquire the struggling company for $1.30 to $1.40 per share.



The identity of the potential buyer has not been disclosed, but in a press release American Apparel said it “takes these matters seriously, and will evaluate this proposal in the ordinary course of business.

“The company remains focused on positioning American Apparel for a successful turnaround,” the company stated.



American Apparel has also adopted a one-year shareholder rights plan that will allow existing stockholders to buy more shares in the event any one person or entity acquires 10% or more of the company’s stock. Known as a “poison pill,” this type of plan is designed to make hostile takeovers of public companies more difficult.



The latest development comes less than a week after American Apparel officially terminated company CEO (and founder) Dov Charney and named longtime fashion executive Paula Schneider as its new chief executive.



American Apparel also said on Monday that Colleen B. Brown, who has been on the board since August, would take over as chair. She replaces co-chairs Allan Mayer and David Danziger, who will continue to serve as directors.