Following troubles in recent years, American Apparel has been sold to the highest bidder: Gildan Activewear.
According to Business Insider, the Canadian apparel brand won a bankruptcy auction to buy American Apparel for around $88 million in cash.
Despite winning the auction, the deal will still need to be approved by a bankruptcy court, which is set to take place later this week.
Under the deal, Gildan will acquire the intellectual property rights related to the American Apparel brand and certain manufacturing equipment. However, it does not acquire any of the 110 American Apparel retail stores, though Gildan expects to keep some of American Apparel’s Los Angeles-based manufacturing, distribution, and warehouse operations intact.