American Apparel Bought by Canada’s Gildan Activeware for $88M

by San Antonio Attorney

A major Canadian clothing maker won a bankruptcy sale for the besieged American Apparel.

The acquisition, for $88 million, exclude the leases for its Los Angeles facility or its 110 retail shops — instantaneously causing the future of the brand’s operations in the U.S., believed to be the biggest in the country, to be in a limbo.

-based whose stable of brands includes Anvil, Gold Toe and Peds,

Gildan Activewear, which is based in Montreal, is going to ask the court’s approval of the sale on Jan.  12.

Afterward, the Los Angeles factory employing 3,500 people could be shut down.

Gildan, whose brands includes Peds, Gold Toe and Anvil, bought the American Apparel brand and part of its inventory and factory equipment.

Gary Bell, the vice president of corporate marketing for the company, said the bankruptcy caused the job losses, not the acquisition of Gildan.

Gildan has yet to decide where the American Apparel products will be made or sold, according to Bell.

The company is expected to provide more details when it provides the annual financial reports on Feb.  23.

Gildan has a total of five facilities in the United States, where it has spent $400 million in manufacturing, majority in the South.

American Apparel shops have received a 100-day reprieve as Gildan maked a decision on its distribution strategy and burns off stocks.

Employees of American Apparel, who have seen the telltale signs of looming layoffs, are looking at President-elect Donald Trump will rescue them.

One employee said Trump saved the jobs of 1,000workers of Carrier, which is why they are hoping that he will do the same for the 3,500 workers of American Apparel.

Selling assets of the company in a bankruptcy auction help the company reduce its debt.  A bankruptcy attorney can provide consultation for anyone seeking Bankruptcy Help.

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