By  on July 10, 2014

Investors drove shares of American Apparel Inc. up 21.3 percent Thursday, celebrating both the company’s $25 million financing deal and the cease-fire between founder Dov Charney and the board that sought to oust him.

The stock jumped 18 cents to $1.03 and logged the strongest performance of the 100 shares in the WWD Global Stock Tracker, which fell 0.7 percent to 99.44 for the day.

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American Apparel said late Wednesday it had reached a deal with New York-based Standard General, which in addition to providing financing, will play a big roll in reshaping the company’s board. Cochairmen Allan Mayer and David Danziger will continue to lead the board, but the five other members will be replaced.

An independent board committee is being formed to oversee the continuing investigation into the alleged misconduct that led to the suspension of Charney, who had been president, chief executive officer and chairman.

Charney fought his dismissal and teamed with Standard, giving the investor the leverage it needed to negotiate the deal. But he didn’t get his old job back. He is serving as a strategic consultant until the investigation is finished and has denied wrongdoing.

Charney’s been in New York lining up the deal with Standard. Reached Thursday, he said he was taking in the scene in Central Park and declined to comment otherwise.

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