Press reports are covering the news that American Apparel has filed for bankruptcy and, according to the WSJ article, there is an agreement to sell the intellectual property and some assets to Gildan for a reported $66 million in cash. The details are unclear as the 2 reports are somewhat conflicting:

Read the Wall Street Journal article here.

Read the Forbes article here.

 

AKC Note:  This is the second bankruptcy filing that American Apparel has gone through in the last 13 months. The business is currently based in Los Angeles with manufacturing in the area. There were reports earlier in the year that they were looking to relocate into either Tennessee or N. Carolina following the planned increase of the minimum wage in California to $15.00 per hour. The Forbes report does not mention the $66 million purchase but indicates that it is the plan of Gildan to acquire the manufacturing assets and to maintain them in California, and that the sale will be in the form of an auction.

Alasdair Carmichael
Carmichael International
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