American Apparel Sells To Canadian Firm And Will Close All Stores
Bankrupt retailer American Apparel started layoffs yesterday as it begins to close all stores.
Canada's Gildan Activewear is buying the American Apparel brand and certain manufacturing equipment for $88M after winning at auction last week. That deal included neither American Apparel stores nor its factory leases, Reuters reports. Gildan had stated it would consider keeping some manufacturing operations in the U.S., but has withdrawn that initial plan.
Around 2,400 Southern California workers are being let go, a sad turn after last week's good news that American Apparel would sell its knitting mill in Garden Grove to Broncs Inc for between $200k and $250k, the L.A. Times reported. That deal could save around 300 jobs at the location as the Compton-based Broncs textile company works with American Apparel to transition some of the mill's employees. The mill will close until new machines are delivered and it reopens as a knitting and dyeing operation. [Reuters, LAT]
