Shares of Kellwood surged 17 percent after the maker of Phat Farm and other brands said it will let shareholders decide on a hostile $542 million bid for the company.

The St. Louis-based apparel maker will remove a poison pill designed to prevent takeovers, and also delay a plan to buy back debt, which critics had called a ploy to thwart a takeover bid by Sun Capital, a Florida-based investment firm.

Kellwood rejected Sun’s advances twice last fall, which had matched the current bid of $21 a share. But the board shifted its stance with Sun’s recent hostile offer, which isn’t conditioned on financing or due diligence, sources close to Kellwood told The Post.