American Apparel’s Board of Directors confirmed Monday that it has received an indication of interest to acquire the company for $1.30 to $1.40 per share and will evaluate the proposal as it positions the company for a turnaround.
The Wall Street Journal reported last week that private equity firm Irving Place Capital was interested in making a bid at $1.30 to $1.40 per share.
The company also announced that Allan Mayer and David Danziger have stepped down as co-chairmen of the Board and will be replaced by Board member Colleen B. Brown as chairperson. Mayer and Danziger will retain their positions as Chairs on the company’s compensation and audit committees, respectively.
Brown, who joined American Apparel’s Board in August, has been serving as Chair of the nominating and governance committee. She brings with years of high-level leadership experiences as both a chief executive and board member of publicly traded companies. Brown’s track record includes a number of impressive turnarounds, returning several companies to profitability.
In a statement, Brown said, “It’s time to focus on the work ahead of us and push this company to reach its full potential.” She added, “This is a pivotal moment for American Apparel, and I believe the company is poised for a significant turnaround. It will be very rewarding to work with an executive of newly appointed CEO Paula Schneider’s caliber, and I thank Allan and David for their diligent efforts as co-chairmen of the Board.”
Brown is notably the fifth woman to nab one of the top positions at American Apparel. Last Tuesday the embattled brand named Paula Schneider as its new CEO, following the termination of former president and CEO Dov Charney for a cause in accordance with the terms of his employment agreement.
Danziger noted, “The board has made progress this year, and I believe we will look back and mark this as an important turning point.” He added, “And we’re ending the year by establishing an updated code of conduct that will serve as an important guide for our company going forward. Step-by-step, we are transforming this company and positioning it for success.”