Gildan to Acquire American Apparel
Transaction expected during Q1 of 2017.
Gildan Activewear has reached an asset purchase agreement with American Apparel. The $66-million deal, which is expected to close during the first quarter of 2017, comprises American Apparel’s intellectual property rights as well as certain assets. Gildan says it will also separately purchase inventory to streamline the transition.
A release from Gildan also reports that American Apparel has voluntarily filed for Chapter 11 bankruptcy protection. If the bankruptcy court requires the company to hold an auction for its assets, the proposed acquisition will represent the initial bid.