Rumor: Charney Wants To Buy American Apparel Inc.

American Apparel Inc.'s

controversial co-founder Dov Charney is part of a group that recently bid between $1.30 and $1.40 to acquire the company, according to a rumor published by the New York Post. The company's shares gained 58 percent on the rumor but fell $0.05 cents a share in after hours action recently to $0.95. Citing unnamed sources, the newspaper said the Los Angeles based apparel company has recently received multiple takeover bids, including one for between $1.30 to $1.40 a share from a private equity firm affiliated with Charney. Charney, formally terminated by the company Tuesday, had served as a consultant to American Apparel following his suspension in June as chief executive for alleged misconduct and violations of company policy Charney said in a statement Thursday posted on Yahoo that American Apparel recently offered him "a multi-million dollar compensation package" which he refused to accept. http://finance.yahoo.com/news/dov-charney-responds-after-american-apparel-dismissal-191559801.html But the company's board said Tuesday that in light of its recent investigation, it had "determined that it would not be appropriate" for Charney to be reinstated as CEO or an officer or employee.