American Apparel Files for Bankruptcy

American Apparel Files for Bankruptcy

Long loved brand American Apparel will more than likely be closing its 110 retail stores in the United States according to Forbes.com.

“American Apparel has filed for bankruptcy for the second time in 13 months with Canadian-based Gildan Activewear Inc. agreeing to acquire the company. Gildan made the announcement on Monday morning with a letter to employees that was obtained by FORBES.

The bankruptcy filing had been expected as a series of events over the last couple of weeks pointed to this outcome.” Apparently American Apparel even missed one of two payments equaling $2.5 million to unsecured creditors after filing for bankruptcy.

Gildan, most famously known for it’s t-shirts and socks, “dropped $88 million USD for its offer and an additional $15 million USD for AA’s (American Apparel’s) inventory purchase orders.” Though Gildan bought out the company, they did not buy any of the company’s United States retail stores. “These stores are likely to close within a few months,” according to the Los Angeles Times.