Today American Apparel LLC filed for its second bankruptcy protection in just over a year. The second bankruptcy comes as the retailer struggles to overcome years of losses and rising online competition. The company became a part of popular culture for its racy and sexual advertising. American Apparel listed assets and liabilities in the range of $100 million to $500 million, according to a Delaware court filing.
Canadian apparel maker Gildan Activewear Inc said it agreed to buy intellectual property rights related to the American Apparel brand and certain assets from American Apparel for about $66 million in cash. Gildan will not be purchasing any retail store assets, it said in a statement.
Throughout the competitive sale process, American Apparel will run its business as usual in the United States and this will have no noticeable effect on day-to-day operations in the United States. The company said last week it was winding down its operations in the UK.
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