NEW YORK (TheStreet) -- Shares of American Apparel (APP) are soaring, up 15.52% to $0.67 in pre-market trading on Wednesday, after the company fired controversial former CEO and founder Dov Charney yesterday, six months after he was ousted as head of the company.
Since then, Charney had been kept on as a paid consultant and remained active at the company, Bloomberg reports.
However, more than 30 executives asked the board to reconsider their decision to terminate Charney's employment, according to Bloomberg.
As American Apparel's largest shareholder, Charney said that he expects to have a "strong relationship" with the company in the coming years, Bloomberg added.
Los Angeles-based American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashions basic apparel and accessories for women, men, children and babies.
Separately, TheStreet Ratings team rates AMERICAN APPAREL INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN APPAREL INC (APP) a SELL. This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."