Latest News in the Business and Financial World

Sunday, April 18, 2021
Log in
  • Home
  • Company News & Financials
  • OTC Markets
  • Tech & Science
  • Health & LifeStyle
  • About WS OTC
    • Analysts & Contributors
    • Contact Us
    • Advertising
    • Feedback
    • Privacy Policy GDPR
  • Mobile
  • Latest News
    • New Theories Explain the Disappearance of the Mayan Civilization
    • What Happens If Coral Reefs Die?
    • Monsanto Loses Lawsuit for its Herbicide Products
    • Mankind (MNKD) shares Plunge after FDA Approves Afrezza, inhaled Insulin for Diabetes patients
    • Psychologists Confirm that Violent Video Games Boost Aggressiveness
    • World of Warcraft: Warlords of Draenor Release Date on Nov 13
    • iPass Global Hotspot Map Unveils Worldwide Wi-fi Coverage

Pages

  • About Wall Street OTC
  • Advertising
  • Analysts & Contributors
  • Contact
  • Feedback
  • Mobile
  • Privacy Policy GDPR
  • Terms of Service

Recent Posts

  • SF Hospital Slaps New Parents with $19K Bill for Baby Treatment
  • Furious Trump Blasts Harley-Davidson for Moving Production Overseas
  • Warning! MRI Machines Could Poison You
  • Flight Attendants More Likely to Get Certain Cancers
  • More Red Meat Allergy Cases Related to Lone Star Tick Bites

American Apparel (APP) adopts stockholder Rights Plan to prevent a Takeover

Jun 28, 2014 By David Warren Leave a Comment

Email, RSS Follow

American Apparel, Inc. (NYSE MKT: APP) today announced that a special committee of its Board of Directors has adopted a one-year stockholder rights plan after its ousted CEO and founder Dov Charney made a bid to increase his control of the clothing chain.

The Los Angeles-based retailer refers the decision to as a move to protect the Company’s stockholders.

A woman walks past an American Apparel store in New York

Mr. Charney was suspended as CEO earlier by The Board of Directors and was cited an “ongoing investigation into alleged misconduct.”

The company’s “poison pill” provision comes under action once anyone purchases 15% or more of the company’s outstanding stock to ensure that the shareholders will be granted the right to purchase shares at $2.75.

“The special committee believes this plan is an important tool to ensure that all American Apparel stockholders are treated fairly,” the company statement said.

According to a regulatory filing Friday, Charney entered into a five-year loan agreement with investment firm Standard General LP to increase his stake.

The company has been facing bankruptcy since 2010. The company recorded a loss of $106.3 million in 2013 on revenue of $633.9 million. That compared to a loss of $37.3 million on revenue of $617.3 million in 2012.

According to the filing Charney currently holds a 27.2 percent stake in American Apparel.

Under the terms of the rights plan, Dov Charney will not be deemed to “beneficially own” any of the securities beneficially owned by Standard General L.P. (“SG”), as referenced in Amendment No. 13 to the Schedule 13D dated December 12, 2007, filed by Mr. Charney on June 27, 2014, solely by reason of the letter agreement dated June 25, 2014, between Dov Charney and SG (the “Letter Agreement”).

American Apparel manufacture clothes and is the retailer of branded fashion basic apparel based in downtown Los Angeles, California. The company was founded by Charney in 1998 and took the company public in 2005 at $8 per share.

Charney’s lawyer Patricia Glaser sent a letter to the company’s board of directors last week saying the company acted in “a manner that was not merely unconscionable but illegal.”

The company said in a statement that the rights will be “attached to all shares of common stock.” Each right will let the holder purchase one ten-thousandth of a share of preferred stock at an exercise price of $2.75.

The company’s shares are down 22 percent this year and closed at 96 cents on Friday.

Email, RSS Follow
The following two tabs change content below.
  • Bio
  • Latest Posts

David Warren

David Warren is a serious tech aficionado. Five years ago he finished his studies at the California Institute of Technology, Caltech, where he earned a degree in Computer Science. Two years ago he got hired as a data protection analyst in an American multinational. When he’s bored with security protocols he enjoys writing reviews and previews of his favorite gadgets and games.

Latest posts by David Warren (see all)

  • Scientists Take A Closer Look At One Of The World’s Largest Volcanic Eruptions - Oct 15, 2017
  • Insects Such As Fruit Flies Can Unexpectedly See In High-Res - Sep 10, 2017
  • The Swimming Style Of Plesiosaurs Explained By A Robot - Sep 1, 2017

Filed Under: Business, Company News & Financials Tagged With: American Apparel, APP, Churney Ceo, NYSE, plan, rights plan, stockholder plan, Stocks, takeover prevent

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 72 other subscribers

Mom holding newborn's hands

SF Hospital Slaps New Parents with $19K Bill for Baby Treatment

Jun 29, 2018 By Anne-Marie Jackson Leave a Comment

Harley-Davidson biker

Furious Trump Blasts Harley-Davidson for Moving Production Overseas

Jun 28, 2018 By Anne-Marie Jackson Leave a Comment

MRI machine

Warning! MRI Machines Could Poison You

Jun 27, 2018 By Anne-Marie Jackson Leave a Comment

Flight Attendants More Likely to Get Certain Cancers

Jun 27, 2018 By Anne-Marie Jackson Leave a Comment

Lone star tick sitting on a succulent leaf

More Red Meat Allergy Cases Related to Lone Star Tick Bites

Jun 26, 2018 By Anne-Marie Jackson Leave a Comment

Time magazine cover

Time Admits Sobbing Cover Girl Was Not Separated from Parents

Jun 26, 2018 By Anne-Marie Jackson Leave a Comment

Sunshine and green leaves

Vitamin D Deficiency Could Boost Risk of Lung Disease

Jun 25, 2018 By Anne-Marie Jackson Leave a Comment

Green-light laser pointer

Greek Boy’s Retina Severely Damaged by Laser Pointer

Jun 22, 2018 By Anne-Marie Jackson Leave a Comment

Red Tesla car

Tesla Suing ‘Whistleblower’ over Data Theft

Jun 21, 2018 By Anne-Marie Jackson Leave a Comment

Boiled eggs and mayonnaise

Eating too Clean Can Lead to Orthorexia

Jun 20, 2018 By Anne-Marie Jackson Leave a Comment

NYC mayor Bill de Blasio

NYC Will Allow People to Smoke Pot in Public

Jun 20, 2018 By Anne-Marie Jackson Leave a Comment

A kitten and a puppy sleeping in a bed while hugging each other

Who Is Smarter Between Cats and Dogs? Researchers Have an Answer (Study)

Jun 19, 2018 By Anne-Marie Jackson Leave a Comment

Orthodox church in Greece

Being Religious Is Tied to Longer Lifespan, Study

Jun 19, 2018 By Anne-Marie Jackson Leave a Comment

Bacon and eggs for breakfast

How Does the Keto Diet Work?

Jun 18, 2018 By Anne-Marie Jackson Leave a Comment

Related Articles

  • Harley-Davidson biker

    Furious Trump Blasts Harley-Davidson for Moving Production Overseas

    Jun 28, 2018
  • Red Tesla car

    Tesla Suing ‘Whistleblower’ over Data Theft

    Jun 21, 2018
  • Mediterranean Diet

    Major 2013 Study on Mediterranean Diet Withdrawn

    Jun 15, 2018
  • Chinese man in a taxicab

    China Uber Rival to Allow Only Same-Sex Passengers as Driver at Night

    Jun 14, 2018
  • Bitcoin rendition

    Market Manipulation Was Behind Bitcoin’s 2017 Price Surge, Study

    Jun 13, 2018
  • American kids selling lemonade

    American Kids Forced to Obtain Permits to Sell Lemonade

    Jun 12, 2018
  • President Donald Trump and VP Mike Pence

    America Could Be Hit By a 2008-Like Recession in 2020

    Jun 6, 2018
  • Hobby Lobby store at night

    Hobby Lobby Agrees to Return Smuggled Artefacts to Iraq

    May 3, 2018
  • United Airlines airplane

    United Airlines to Resume Pet Reservations in July

    May 2, 2018
  • Nikola Motors truck

    Tesla Motors Faces $2Bn Lawsuit for Allegedly Copying Electric Truck Design

    May 2, 2018

Categories

  • Business
  • Company News & Financials
  • Diversified Financial
  • Entertainment
  • Featured
  • Health & LifeStyle
  • Micro Cap
  • Mid Cap
  • National News
  • Nature
  • OTC Exchange
  • OTC Markets
  • OTC Research
  • Science
  • Small Cap
  • Sports
  • Tech & Science
  • U.S.
  • Uncategorized
  • Wall Street
  • World
  • World Indexes

Copyright © 2021 wallstreetotc.com

About · Privacy Policy · Sitemap · Terms of Service · Contact