Gildan Activewear acquires American Apparel via auction

11 Jan '17

1 min read

Courtesy: Gildan

Canadian apparel retailer Gildan Activewear has acquired American Apparel through a court supervised auction. Gildan entered into an asset purchase agreement with American Apparel that served as the initial bid in a bankruptcy court supervised auction on November 14, and the same day, American Apparel filed for Chapter 11 bankruptcy protection.

Gildan’s final cash bid of around $88 million includes the acquisition of the worldwide intellectual property rights related to the American Apparel brand and certain manufacturing facilities.

The Canadian garment retailer will also separately purchase American Apparel inventory, to ensure a seamless supply of goods as it integrates the brand within its Printwear business.

“We are excited to be moving forward with this acquisition, as the American Apparel brand will be a strong complementary addition to our growing brand portfolio,” CEO of Gildan Glenn Chamandy said. “We see strong potential to grow American Apparel sales by leveraging our extensive printwear distribution networks to drive further market share penetration.” (AR)

Fibre2Fashion News Desk – India

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