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American Apparel Strikes Rescue Deal With Investor

American Apparel Inc. will get as much as $25 million from investor Standard General LP in an agreement that shakes up the board and lets the struggling retailer pay off a $10 million loan.

Under the agreement, Standard General will choose three board members for American Apparel, and two other directors will be chosen mutually, the Los Angeles-based chain said yesterday in a statement. Co-Chairmen Allan Mayer and David Danziger will be the only current directors staying on the seven-member board. Bloomberg reported details of the pact earlier.