A business icon may be close to vanishing from L.A.’s fashion landscape.
Gildan Activewear Inc. of Montreal, Canada, was the winning bidder at an auction Wednesday and says it will pay $88 million to buy the Los Angeles- based American Apparel as part of bankruptcy proceedings. American Apparel has been in bankruptcy since November — for the second time.
The deal is $22 million higher than Gildan original offer in November. It provides for Gildan to acquire American Apparel痴 intellectual property rights and some manufacturing equipment, but not American Apparel’s 110 stores, which are likely to close within months.
The agreement could be approved by a Delaware court Wednesday.
Gildan says it plans to integrate the American Apparel brand into its printwear business. The Canadian company makes clothing, including such items as T-shirts, underwear, and socks, under various labels, including its own.
—City News Service