NEW YORK (TheStreet) -- Shares of American Apparel (APP) are tumbling, down 10.53% to $1.02 in midday trading Tuesday, trading on twice its normal trading volume, after founder and former CEO of the retail chain Dov Charney said he's down to his last $100,000, Bloomberg reports.
Charney was fired and "betrayed" by investment partner Standard General after a six-month suspension, Bloomberg added.
He is now working with Irving Place Capital in a potential takeover bid after the private-equity firm expressed interest in acquiring American Apparel for between $1.30 to $1.40 a share, according to Bloomberg.
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As of 12:41 p.m. ET, about 4.38 million shares have exchanged hands, compared to its average daily volume of 1.58 million shares. The stock has ranged in price between 97 cents to $1.17 per share after opening the day at $1.16.
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 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."