Struggling retailer American Apparel Inc said it has adopted a new, one-year stockholder rights plan with a 10 percent trigger. "The board implemented the rights plan as an additional means to ensure that all American Apparel stockholders are treated fairly," the Los Angeles-based retailer said in a statement late on Sunday.Each right will entitle its holder to purchase, for $3.25 each, a number of shares of the company's common stock or substantially equivalent securities having a market value of twice such price, American Apparel said.The company has been approached by private-equity firm Irving Place Capital for a possible takeover, the Wall Street Journal reported on Thursday, citing sources.The retailer fired its Chief Executive Dov Charney last week, ending a tenure racked with sexual assault allegations and scandal.
American Apparel, Inc. is a vertically integrated manufacturer, distributor, and retailer of branded fashions basic apparel and accessories for women, men, children and babies. Shares of APP traded higher by 7.0% or $0.07/share to $1.07. In the past year, the shares have traded as low as $0.46 and as high as $1.45. On average, 1580810 shares of APP exchange hands on a given day and today's volume is recorded at 15434234.
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