American Apparel adopts new stockholder rights plan

Los Angeles: Struggling retailer American Apparel Inc said it has adopted a new, one-year stockholder rights plan with a 10 per cent trigger.

“The board implemented the rights plan as an additional means to ensure that all American Apparel stockholders are treated fairly,” the Los Angeles-based retailer said in a statement.

Each right will entitle its holder to purchase, for $3.25 each, a number of shares of the company’s common stock or substantially equivalent securities having a market value of twice such price, American Apparel said.