Canadian activewear company, Gildan has bought American Apparel for $88 million USD, though the deal awaits official approval by a bankruptcy court judge.
ICYMI, the U.S retailer closed its doors in Australia late last year, following repeated bankruptcy filings. Sad face.
Renowned for its tees (namely Kanye merch), socks and underwear, Gildan made headlines in 2016 with its $66 million bid to buy out American Apparel. However, due to a reported bidding clash between other retailers, the activewear brand was forced to exceed its initial offer by a cool $22 million.
So what does this mean for the once-loved “made in the USA” brand?
According to reports, Gildan won’t be taking over any of the 100 or so retail stores AA still has left but will instead focus on the brand’s manufacturing.
In a statement released earlier this week, Gildan CEO, Glenn Chamandy said:
"We are excited to be moving forward with this acquisition. The American Apparel brand will be a strong complementary addition to our growing brand portfolio. 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."