The deal would revamp the struggling retailer's board and infuse it with the cash. 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 replaced 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 5.26% to $1.24 at 10:57 a.m. More than 6.4 million shares had changed hands, compared to the average volume of 5,708,190.
Must Read: Warren Buffett's 25 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. APP Price data by YCharts
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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