Looks Like American Apparel Is Headed to Canada

Gildan Activewear (GIL) of Canada announced on Tuesday that the company won a U.S. bankruptcy court-supervised auction for American Apparel with around an $88 million cash bid.

Approval for the sale is subject to court approval in Delaware on Thursday. The sale, which is expected to be completd early next month, would include 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. The 110 current retail stores that American Apparel has will not be purchased.

“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.

“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.”

Disclaimer: We have no position in Gildan Activewear Inc (NYSE: GIL) and have not been compensated for this article.