Gildan Likely To Beat Amazon And Forever 21 To Buy American Apparel
American Apparel filed for bankruptcy in 2015. Since then it’s been anyone’s guess what would happen to the ‘Made in USA’ trademark.
The bankruptcy claim was attributed in large part to their insistence on manufacture in the US. That brought with it some of the highest production costs in the world. Gildan have kept their costs low with overseas production and fears are that they’ll do the same with American Apparel. Gildan agreed to keep the plants open but there’s no certainty if that will happen or not.
Amazon have been looking to embed in the clothing industry for a while now and the Southern California plants would be useful to the company even without the American Apparel trademark.
Gildan’s offer of $66 million is the biggest on the table so it’s likely that Amazon will be the only real contenders for the brand.
It’ll be a while before this goes through. In the meantime we can all take advantage of American Apparel’s 40% off sale.