American Apparel poised for $1.30 open

(Reuters) - Clothing manufacturer American Apparel Inc (APP.A) has been approached by private equity firm Irving Place Capital for a possible takeover, The Wall Street Journal reported, citing sources.

The Los Angeles-based retailer received an expression of interest from Irving Place in the last couple of weeks, people familiar with the matter told the Journal, adding that the approach was initially rebuffed because of the low price.

Irving Place then raised its price range to $1.30 to $1.40 per share. The board has yet to respond, the sources told the Journal.

If rumors of Dov Charney's collective bid to regain control of his beloved company hold true, American Apparel could see even higher prices if speculation about Charney are correct.