American Apparel have been bought by Canadian company, Gildan, for $88 million USD after the US retailer closed its doors in Australia following bankruptcy filings. Known for its trademark basics and the infamous disco pants of 2013, this isn’t the first time the two companies have found themselves in close proximity.
Gildan, an activewear company, attempted to buy out AA in 2016 for $66 million yet due to reports of bidding clashes had to exceed the initial offer by $22 million. Practically, Gildan will not be taking over the 100 stores left but will focus on the manufacturing of the brand.
Gildan CEO, Glenn Chamandy stated, “we are excited to be moving forward with this acquisition. The American Apparel brand will be a strong complementary addition to our growing brand portfolio. We see strong potential to grow American Apparel sales by leveraging our extensive printwear distribution networks in North America and internationally to drive further market share penetration in the fashion basics segment of these markets.”
Watch this space.
Images C/O American Apparel & Esquire