Gildan Activewear has won an auction to purchase bankrupt clothing company American Apparel for $88 million (U.S.) which went into a court- supervised liquidation process not long ago.
The arrangement reported Tuesday will see it secure American Apparel’s intellectual property rights and some manufacturing equipment from the Los Angeles offices, yet not the leases for the manufacturing or distribution centers.
The transaction is liable to approval by a U.S. chapter 11 court on Thursday. In the event that it goes through as expected, the arrangement will be finished one month from now.
It additionally does exclude American Apparel’s stores and online business webpage.
American Apparel rose to noticeable quality subsequent to opening manufacturing offices in L.A. also, drawing in a young clientele with the adoption of sexually provocative publicizing.
Notwithstanding, it entered bankruptcy protection twice, in October 2015 and after that November 2016.
While a few different names, including Amazon and Forever 21, were purportedly interested by the brand, Gildan rose the victor with a sweetened $88-million offer on Tuesday.