NEW YORK (TheStreet) -- American Apparel (APP) shares are up 7.5% to $1.15 in early market trading on Monday after the teen apparel retailer said that it is evaluating an acquisition offer from an unnamed party with a purchase price valued between $1.30 and $1.40 per share.
The company also announced that co-chairman Allan Mayer and David Danziger have stepped down from their positions to be replaced by Colleen B. Brown who joined the board in August. Mayer and Danziger will remain on the company's board .
The struggling retailer's stock jumped 45% last Thursday when the New York Post originally broke the story of the proposed acquisition, its largest single day gain in five years, according to Bloomberg.
Exclusive Report: Jim Cramer's Best Stocks for 2015
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 combination 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."