Shareholders of Tarrant Apparel Group on Thursday approved a merger that will take the company private and return it to the control of its founders, the company said.
Investors representing more than 74 percent of the company’s outstanding shares voted in favor of the move at a special meeting, the Los Angeles-based private label manufacturer said.
In February, Tarrant agreed to sell its outstanding shares to an acquiring firm headed by founders Gerard Guez and Todd Kay at the price of 85 cents a share, or about $15.2 million.
Shares of the company closed trading Thursday at 84 cents.
Guez is Tarrant’s chairman and interim chief executive officer and Kay is the company’s vice chairman.
Under the initially disclosed terms, the deal will merge the manufacturer with Sunrise Merger Co., which will then sell the shares not already owned by Guez and Kay to Sunrise Acquisition Co. The two are members and managers of Sunrise Acquisition.