When news broke of Gildan Activewear's purchase of American Apparel (to the tune of $103 million, up from its $88 million offer) earlier this week, there was hope for the retailer still under new management. Alas, it looks like it's time to bid adieu to "Made in the U.S.A" V-neck T-shirts purchased in bulk, and neon or metallic Spandex-filled pieces you bought for that one concert that one time. Gildan didn't renew the lease of American Apparel's production and distribution facilities in L.A., the Los Angeles Times reports. (Its Golden Grove factory was already sold, acccording to the publication.) Apparently, there was little interest in the brand's 110 retail locations during the sale, too.
While remaining stores were expected to close shortly after the Gildan deal was closed, nothing was officially announced. According to a spokesperson for American Apparel, the retailer's stores are expected to remain for the next 100 days, with the possibility of them keeping doors open for longer. Garry Bell, a representative for Gildan, told WWD that more specifics as to the integration plan for American Apparel would likely become public during the company's next conference call, which is slated for February 23.
However this shakes out, you'll probably want to squeeze in a pitstop to your local American Apparel for some hoodies and lame everything while you can.
This story was originally published on January 10, 2017.
On Monday, Canadian retailer Gildan Activewear bought American Apparel for the hefty sum of $88 million, Fortune reports.
Back in October 2015, American Apparel filed for bankruptcy after falling into a downward spiral for most of the year. This purchase saves the future of the company, but what does it mean for the trendy retail locations where we get our bright colors and glossy prints?
According to Fortune, Gildan Activewear won't take any of American Apparel's 110 retail locations, instead focusing on the brand and its manufacturing, including taking over some of the California-based plants. Remember, one of the American Apparel's calling cards is its "Made in USA" promise, yet Gildan produces most of its product overseas. This is just one of many uncertainties when it comes to the future of the brand, which has been a retail staple since it was founded in 1998.
Gildan was up against Next Level Apparel in the battle for ownership, originally bidding $66 million before raising the sum in order to secure the sale.
Neither American Apparel nor Gildan Activewear responded to Fortune's request for comment, which is likely because details are confidential and the sale won't be secured until approved by a judge on Thursday.
At least it doesn't look like we'll have to call it "Canadian Apparel" now. At least, not yet.