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The American Apparel factory headquarters is pictured in Los Angeles, July 7, 2014.Jonathan Alcorn/Reuters

American Apparel Inc. shares jumped as much as 65 per cent after the New York Post reported that the money-losing clothing chain has received a takeover offer.

The bid would value the company at $1.30 to $1.40 a share, the Post reported, sending the shares as high as $1.14 at the close in New York. The stock had tumbled 44 per cent this year through Wednesday.

The reported bid comes two days after American Apparel terminated co-founder Dov Charney and hired Paula Schneider as its next chief executive officer. Charney remains the Los Angeles-based company's largest shareholder and has fought his ouster from clothing chain.

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