Two powerhouses come together
And it’s the supplier behind Kanye West’s ‘Pablo’ tour merch.
Following initial reports that American Apparel would be filing for a second bankruptcy, the fashion retailer now seems to have found a buyer to acquire its company. On Monday, Gildan Activewear Inc. announced that it has entered into a deal with American Apparel to buy its intellectual property business for a total of $66 million USD. According to a press release, Gildan would put in the initial bid and presumably be chosen as the successful bidder in case American Apparel is forced to auction off its assets and business. Accordingly, the retailer has voluntarily filed for Chapter 11 bankruptcy protection once again.
For those who don’t know already, Montreal-based Gildan is actually the supplier behind Kanye West‘s coveted The Life of Pablo tour merch. The company has noted its possible acquisition of American Apparel in a statement:
The American Apparel brand is a highly recognized brand among consumers and within the North American printwear channel. The acquisition will create revenue growth opportunities by leveraging Gildan’s extensive distribution network in North American and international printwear markets to further increase the brand’s penetration in the faster growing fashion basics segments of these markets.
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- Fashionista
