Founded in 1989 by the ever controversial Dov Charney, American Apparel has been in struggle mode for a long time, and hasn’t turned a profit since 2009. After forcing out perv-tastic Charney in fall of 2014 and then filing Chapter 11 bankruptcy October 2015, it was revealed today that the company has filed for a second bankruptcy just over a year after the first.
It was also announced today that Montreal-based Gildan, a clothing company known for its low-budget tees, has offered $66 million for the rights to the American Apparel brand name. It will be a sad coming home party of sorts for the label, which was founded by Charney in Montreal before relocating to Los Angeles.
The bummer part is that Gildan bought only the rights to the name and parts of the inventory, but didn’t purchase the 110 U.S. stores, which means they inevitably will be shutting down. Already American Apparel’s U.K. stores are in the process of closing.
Gildan does all its manufacturing overseas so the famed American Apparel Los-Angeles factory probably is in danger of shuttering as well though according to Forbes, “Gildan said it is invested in U.S. manufacturing and would keep the work in the Los Angeles area. It cited a recent acquisition of Alstyle Apparel that is also based in southern California and where Gildan has maintained operations.”
