After rumors circulated that Amazon and Forever 21 were in a bidding war over American Apparel, it’s been confirmed that neither company will prevail. Instead, Canadian company, Gildan Activewear, will buy out the California-based fashion company.
The company announced on Tuesday that is has won a U.S. bankruptcy court-supervised auction for the embattled AA brand with a roughly $88 million cash bid.
According to USA Today, the sale, subject to court approval set for Thursday in Delaware, includes the acquisition of worldwide intellectual property rights related to the American Apparel brand, along with certain manufacturing equipment and some of the U.S. company’s current inventory. However, Gildan is not buying any of American Apparel’s 110 current retail stores as part of the deal.
“The American Apparel brand will be a strong complementary addition to our growing brand portfolio,” Gildan President and CEO Glenn Chamandy said in a written statement announcing the auction outcome. “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.”
Safe to say, Twitter isn’t sure how to feel about the California company going Canadian:
in 2007 American Apparel was worth just under $1 billion. bruh…. https://t.co/OqxwmlG7gC
— CHRIS FOXX (@FoxxFiles) January 10, 2017
feels unfortunately prescient reading about a company called american apparel being rescued at the eleventh hour by candians tbqh https://t.co/oPhUa6yPLq
— James Dennin (@JamesFDennin) January 10, 2017
Come to think of it, now that American Apparel is Canadian-owned, we can just shorten it to A-A-Eh?!?
— DennisVanStaalduinen (@DenVan) January 10, 2017
The sale is expected to be completed by early February.
[via USA Today]