American Apparel Inc. will get $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, a person familiar with the matter said.

Under the pact, Standard General will add three board members to American Apparel and two other directors will be chosen mutually, said the person, who asked not to be identified because the deal hasn’t been made public yet. Co-Chairmen Allan Mayer and David Danziger will be the only current directors staying on American Apparel’s seven-member board, according to the person.

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