Amazon among American Apparel suitors

AmericanApparel, Unqilo, Westfield LondonRetail behemoth Amazon.com and teen apparel chain Forever 21 Inc are among those vying to acquire the bankrupt American Apparel LLC, Reuters has reported this morning.

Referencing sources close to the talks, Reuters report that the retailers, as well as Next Level Apparel and brand licensor Authentic Brands Group LLC have been in talks with American Apparel about submitting offers ahead of a Friday deadline.

An outcome is expected next week, as political pressure mounts over the future of the company and the thousands of American manufacturing workers it employs with its “Made in the USA” philosophy.

Canadian-based apparel maker Gildan Activewear Inc previously made a bid for the iconic American retailer, offering $66 million for the company’s intellectual property rights and certain assets. A spokesperson told Reuters that Gildan is preparing them for the impending auction, but the company has previously stated that they are not interested in American Apparel’s retail assets.

American Apparel filed for bankruptcy last November with $177 million in debts, following a drawn-out legal battle with its ousted founder Dov Charney amid allegations of sexual harassment and declining sales since 2010. It was the company’s second bankruptcy in as many years, following a similar move in October 2015.

The Australian arm of the fashion retailer went into voluntary administration in November last year, with the company closing its Australian stores and shutting down its online presence. American Apparel’s UK and Irish businesses also went into voluntary administration.

Reuters

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.