American Apparel Bankruptcy Sale to Gildan is Approved
WWD and other sources are reporting that yesterday January 12, 2017 the bankruptcy judge in the American Apparel case approved the sale of most of the assets (including the Brand) to Gildan. The entire sale to Gildan was 103 million dollars of which $15 million was for the purchase of inventory. Gildan was the highest bidder at the auction held earlier this week, their original offer of $66 million was raised to $88 million and Next Level Apparel apparently made a serious bid at an only slightly lower price. This bid needed to be approved and it was.
Other assets auctioned off and not included in the purchase by Gildan included, lease buybacks by some retail locations, Bayside bought some manufacturing elements, and there is some negotiations going on for other manufacturing pieces not purchased by Gildan. Retail sales of the American Apparel brand have been allowed by Gildan for approximately another three months with the future undecided after that. Also undecided are where and with what work force will Gildan make the shirts in the future and how it will fit in with their garment company collection (Gildan, Goldtoe, Comfort Colors, Anvil, Alstyle, and other licensed brands by agreement.)