American Apparel, once the darling of the U.S. fashion crowd, has filed for Chapter 11 for the second time in two years
MONTREAL—Gildan Activewear Inc. says it has signed a deal to buy the American Apparel brand for $66 million.
American Apparel filed for Chapter 11 bankruptcy protection on Nov. 14. It also filed for bankruptcy protection in October 2015.
Under the deal, Gildan has agreed to acquire the intellectual property rights related to the American Apparel brand.
Gildan will also separately buy inventory from American Apparel to ensure a supply of goods while it integrates the brand.
It is not purchasing any of the company’s retail store assets.
The closing of the deal is subject to approvals by the American Apparel bankruptcy process and customary conditions.
Gildan states on its website that it owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean Basin, North America and Bangladesh.