Tarrant Apparel Group said it will hold a special meeting of shareholders on August 20 to vote on a plan by two of its founders to take the Los Angeles apparel company private.

A subsidiary of Sunrise Acquisition Co. LLC, which is owned by Tarrant Apparel Chairman Gerard Guez and Vice Chairman Todd Kay, proposes to pay 85 cents per share in a deal valued at $15.2 million. The proposal was announced in February.

Guez is the company's largest shareholder, controlling 33 percent of shares. Kay is the third largest shareholder, with a 9 percent stake.

Tarrant Apparel manufactures private brand clothing for national chains, such as Macy's and Wal-Mart and produces garments for its own brand, American Rag Cie. It struggled to maintain its stock price even before the economic downturn and has been threatened with delisting from the Nasdaq.

The shareholder meeting will be held at Tarrant Apparel's corporate headquarters in downtown Los Angeles.

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