American Apparel achieved an arrangement to offer its licensed property rights and a few assets for Gildan Activewear Inc. for about $66 million in cash, the retail company filed for its second bankruptcy protection in a little more than a year.
Both companies can follow their origins to the city of Montreal, as Gildan was established there in 1984, and American Apparel was established there in 1989 preceding later moving its headquarters to the U.S.
The company turned into a piece of mainstream culture for its indecent promoting and impropriety with employees. American Apparel filed for chapter 11 in October 2015 and rose, in the wake of battling off an adversary offer from ex-CEO Dov Charney.
In February as a privately owned business under the control of its bondholders, after the second bankruptcy comes as the retailer battles to defeat years of loses and rising online rivalry.
according to a Delaware court filing. American Apparel, known as much for its sexually charged promoting, recorded resources and liabilities in the scope of $100 million to $500 million.
No less than eight U.S. teenager retailers, including Wet Seal and Pacific Sunwear of California, have filed for chapter 11 in the previous two years, as the ways of managing money of youngsters move and they visit shopping centers less regularly.