American Apparel Looks to Replace Board Members

American Apparel Inc., which recently raised $14.9 million from private investors including Canadian financier Michael Serruya and Delavaco Capital, is in talks to replace two of its six board members, Reuters reported, citing news from Bloomberg. Serruva and Delavaco Capital may buy $8 million of additional shares in the coming weeks, Bloomberg reported.

(Reuters) – Clothing chain American Apparel Inc is in talks to replace two of its six board members, Bloomberg said, citing three people involved in the discussions.

In April, American Apparel — facing a long-running sales slump — said it raised $14.9 million by selling some of its shares at a discount of 43 percent to a group of private investors led by Canadian financier Michael Serruya and Delavaco Capital.

The investors, led by Michael Serruya and private-equity firm Delavaco Capital, may buy about $8 million of additional shares in the coming weeks, Bloomberg said citing two of the sources.

Peter Schey, a spokesman for American Apparel, did not immediately reply to an email requesting comment.

(Reporting by Mihir Dalal in Bangalore; Editing by Gary Hill)