American Apparel Has Been Sold To Gildan For Just Over $100 Million
The company was auctioned off after declaring bankruptcy for the second time in November.
American Apparel has been absorbed by Gildan Activewear, according to the Los Angeles Times. The Canadian sportswear company won an auction for the rights to the brand, American Apparel LLC, for $88 million, and has reportedly purchased its inventory for about $15 million.
American Apparel declared bankruptcy for the second time in November 2016. The company filed for the first time in October 2015, following the ouster of controversial founder Dov Charney. Though the deal is still pending approval from a Delaware bankruptcy court judge, it appears the brand's profile will change substantially.
Maybe most notably, Gildan did not buy American Apparel's 110 U.S. retail locations in the $88 million deal. The stores are "likely to close," according to analysts cited in the article.
With its sale to Gildan, the "American" in its brand name is no longer completely accurate either. Gildan apparently "hasn’t ruled out making some American Apparel products in the U.S.," but the L.A. Times does note that the majority of Gildan's manufacturing facilities are in Central America and the Caribbean.