AMERICAN APPAREL CLOSING ALL STORES, LAYING OFF 2,400 EMPLOYEES
The era of walking into an American Apparel store and picking up the latest hoodie or sweat pant has come to an end.
Last week, Canadian-based Gildan Activewear Inc. won the bid to acquire the worldwide intellectual property rights related to the American Apparel brand and certain assets from American Apparel, LLC, a California-based manufacturer of fashion basics for a cash purchase price of approximately $88 million, after the company had filed bankruptcy for the second time. However, Gildan stated in its filing that it would not be purchasing any retail store assets for American Apparel, and has decided for the moment not to continue manufacturing in the United States.
Now, as a result, according to reports, all 110 existing American Apparel stores are slated to close by the end of April and the company has begun laying off some of its factory workers. In total, approximately 2,400 employees of American Apparel, including those who work in its stores, are expected to lose their jobs.
At the moment, the company’s website is still selling goods for 40 percent off, and sales are going on at the stores.
