Why American Apparel (APP) Stock Is Up Today

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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

APP Chart APP 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.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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