Gildan is High Bidder for American Apparel
Reuters News Agency is reporting that Gildan has made the high bid for American Apparel’s assets at $88 Million. This is unofficial as as the proceeding are supposed to be confidential and also any bid is subject to final approval by a bankruptcy judge on Thursday of this week.
If true then they apparently outbid Next Level Apparel, Amazon, and possibly other last minute bidders. They also had to pay 25% more than their original offer which they have reported was $66 million.
Gildan is certain to use their manufacturing expertise in moving the brand forward. Beyond that, it is all speculative about whether they will remain in LA or in the USA, whether they will retain any of the current work force, etc. Their original bid included equipment and leases which might point to keeping some manufacturing in LA at least for a time.
This probable purchase of American Apparel follows on the heels of their purchases of Anvil Knitwear, Comfort Colors and Alstyle garment companies as well as Goldtoe Socks. They also have licensing type deals in certain markets to make and distribute Secret, Silks, Kushyfoot ,Therapy Plus, Under Armour, Mossy Oak and New Balance brands.