American Apparel Is Done All 110 Stores Are Closing After Company Is Sold In Bankruptcy Auction
It’s the end of a fashion era… kind of.
American Apparel is shutting down — or, more accurately, it’s going to look very different — after being purchased at a bankruptcy auction by Canadian company Gildan Activewear.
Gildan, which makes t-shirts and other clothes themselves, has indicated that they will shut down American Apparel’s 110 stores, as well as the factory in Los Angeles where the company had produced all of its clothing.
For $88 million in the bankruptcy auction, Gildan grabbed up all of AA’s intellectual property, some manufacturing equipment, and more — but in the process of shutting everything else down, nearly 3,500 people could be out of work within the next few days.
Gildan spokesman Garry Bell discussed the purchase with the LA Times, saying:
“This was always about buying assets out of bankruptcy. The reality is this wasn’t a purchase of an ongoing concern.”
Yikes!
Gildan intends to snap up their branding to complement its current printwear business, so we’ll see what this means for AA’s styles and fashions in time.
With trendy, often controversial ad campaigns and a made-in-America style behind its brand, American Apparel was absolutely unique — and now, it’s no more.
Better go get all those hot clearance sales the next couple days while you’ve got the chance, because the company — as we know it, at least — will NOT be around for very long!
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