Gerard Guez and Todd Kay, the founders of Tarrant Apparel Group, are planning to take the company private it emerged today (28 April).

The two executives are proposing to buy the outstanding publicly held shares for $0.80 per share in cash - an 11% premium to the closing price of Tarrant's common stock on 25 April.

Guez and Kay, who between them own 51% of the company's common stock, expect the board of directors to form a special committee of independent directors to consider the proposal.

The Los Angeles-based company, which designs and sources private label and private brand casual apparel, in March swung to a full year profit of $1.7m or $0.06 per share, from a loss of $22.2m or $0.73 per share in fiscal 2006.

Annual sales were up 4.9% to $243.7m from $232.4m.