Is American Apparel Heading to Canada?


Your day-glo, high shine leggings are heading to Canada it seems.

After a tumultuous year for the retailer, American Apparel, a deal has been done to seal its future.


Gildan Activewear buys American Apparel

The judge overseeing AA’s bankruptcy on Thursday gave the OK on its sale to Canadian manufacturer Gildan Activewear, which includes the initial $88m plus $15m for inventory purchase orders. A closing date has not yet been set and could be subject to regulatory approvals.

Next Level came out of Monday’s auction as the backup bidder with an $86m offer plus $16m in purchase orders.

Meanwhile, American Apparel has lined up a buyer for one of its Southern California manufacturing plants, a deal which could potentially save more than 330 jobs, a company lawyer for American Apparel said Thursday.

The bankrupt retailer has reached a preliminary deal to sell its Garden Grove, California, facilities to Broncs Inc. The deal, which has yet to close, could be valued between $200,000-$250,000, the lawyer said.

“This would be to restart Garden Grove as a knitting and dyeing facility, and potentially hire American Apparel employees,” he said. State labour filings indicate that of American Apparel’s nearly 3,500 manufacturing employees, the Garden Grove facility employs more than 330.

According to its website, Broncs is based in Compton and operates as Wescoast Textile. President and founder Joel Chun couldn’t immediately be reached for comment Thursday.

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