Things aren’t going so well for many retail companies in the last few months. Sears Holdings closed dozens of its stores, Macy’s did the same, and The Limited said farewell to all 250 of its stores. Now, American Apparel is shutting down all 110 of its stores.
However, even though American Apparel is gone, the Canadian company that purchased it plans a revamp. At a bankruptcy auction, Gildan Activewear snagged American Apparel for $88 million. Gildan now owns all American Apparel property, factories in L.A., and even manufacturing equipment.
Gildan produces t-shirts and other apparel and says it will shut down all American Apparel stores in effort to rebrand its own company. Yet American Apparel branded its own unique style. The made-in-America style is what kept it customers coming back.
Gildan has not yet announced how it will change the company, but customers can expect that American Apparel won’t ever be the same. A spokesperson for Gildan said, “This was always about buying assets out of bankruptcy. The reality is this wasn’t a purchase of an ongoing concern.”
The closure of all 110 American Apparel stores possibly means that more than 3,500 employees lose their jobs.
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