NEW YORK (TheStreet) -- American Apparel (APP) rose Friday after hedge fund Standard General completed a deal to revamp the company's board and infused the struggling clothing retailer with $25 million.
Some of that money will help pay off a loan called in by investment firm Lion Capital. As part of the deal, five of the board's seven members will be replace and ousted founder Dov Charney will come on as a strategic consultant until the completion of an investigation into his actions.
The stock was up 7.77% to $1.11 at 10:56 a.m. on Friday. The stock rose 19% on Thursday to close above $1 for the first time since Feb. 13.