Gildan Activewear has won an auction to buy bankrupt clothing company American Apparel for US$88-million ($116 million Canadian), some $22-million (US) more than a stalking horse offer it made in November.
The deal, announced Tuesday, will see it acquire American Apparel’s intellectual property rights and some manufacturing equipment from the L.A. facilities, but not the leases for the manufacturing or distribution centres.
It also doesn’t include American Apparel’s stores and e-commerce site, which will continue to have access to a limited licence for 100 days.
Founded by Quebec native Dov Charney in 1989, American Apparel rose to prominence after opening manufacturing facilities in Los Angeles.
The question is: