American Apparel filed for Chapter 11 Bankruptcy protection yesterday and at the same time Gildan has put in a bid for the brand name. To be exact Gildan says, “an asset purchase agreement (APA) to acquire the worldwide intellectual property rights related to the American Apparel® brand and certain assets from American Apparel, LLC, (American Apparel), a U.S.-based manufacturer of fashion basics, for a cash purchase price of approximately $66 million.”
No Dov Charney? Now probably no Made in LA, and who knows about Made in USA. That’s quite a few hard working folks out of business, a very sad and painful development.
Gildan’s press release says they separately will buy inventory, but it looks like the other assets will be sold at auction and the LA factory will be no more.
No word in the USA made component of American Apparel brand.
The press release says Gildan is NOT buying the retails stores.
It is a sad day.
In happier days yours truly and former CEO and founder Dov Charney, and yours truly with the incredible production manager Marty Bailey at the factory in downtown LA:
And there is a video of our tour of the factory at that time: