Gildan Wins Auction to Buy American Apparel

American Apparel bankruptcy

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.


Recent News

Brands Keep Tapping Influencers to Elevate Apparel Offerings

Fulfilling the demands of fashion-forward consumers can be challenging in today’s retail market, but many brands are turning to influencers, including bloggers and designers, to heighten their clothing merchandise. From Target’s Victoria Beckham collaboration to Lidl’s Heidi Klum line, here’s who top brands are teaming up with to elevate their apparel offerings.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

Are Unethical Sourcing Practices Helping TJX Win at Retail Right Now?

It’s fun to find a steal at stores like T.J. Maxx and Marshalls. In fact, the off-price purveyor prides itself on that very treasure hunt. Now, however, some are calling into question the actual costs of getting the consumer such sweet deals.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

The Week in Footwear: Première Vision Expands Footwear Manufacturing Solutions

Première Vision will broaden its offer of services tailored for the footwear industry at its next show in Paris. Plus, back-to-school sales are expected to increase by four percent.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more