Amazon’s interest in buying American Apparel will fizzle now that Gildan has won its bid to buy the bankrupt basics retailer.
The Canadian apparel maker said in a statement Tuesday that it emerged as the winner in an auction to acquire the American Apparel and some of its assets for $88 million—higher than its initial $66 million offer.
As part of the deal, Gildan will acquire American Apparel’s worldwide intellectual property rights and certain manufacturing equipment. Gildan will also make a separate purchase of American Apparel’s inventory to “ensure a seamless supply of goods” as the company integrates the brand into its printwear business.
Gildan will not be buying any of American Apparel’s physical store assets.
“We are excited to be moving forward with this acquisition. The American Apparel brand will be a strong complementary addition to our growing brand portfolio,” Gildan president and CEO Glenn Chamandy said. “We see strong potential to grow American Apparel sales by leveraging our extensive printwear distribution networks in North America and internationally to drive further market share penetration in the fashion basics segment of these markets.”
American Apparel filed for bankruptcy the same day that Gildan placed its initial bid to buy it on Nov. 14 after struggling with sluggish sales and steady negative press tied to its founder and former CEO Dov Charney.
Amazon and Forever 21 had reportedly put bids in to the buy the company, and their offers may have been what drove Gildan up $22 million from its initial bid.
Faced with a mountain of debt and suppliers in retreat, Toys R Us filed for bankruptcy this week.Read more
Labeling could be a boon for retailers who are looking to address consumer preferences and prioritize sustainability measures.Read more
The Chinese government’s ongoing program to inspect factories throughout the country seems to have only a minor impact on apparel and textile facilities.Read more
If the world has been forever altered by the swipe left, swipe right culture of online dating, apparel sourcing may be forever changed by Foursource.Read more
When a company like MAS Holdings, a major Sri Lanka-based intimates, activewear and leisure wear supplier that produces more than one million garments every day starts eyeing startups, it’s clear where the industry is headed.Read more
Tempur Sealy taps American Textile for sleep line, Welspun certified for Made in Green and Microban picks U.K. distributor.Read more
New research on how animals spin silk could open the door for more sustainable synthetic fiber production.Read more