American Apparel Is No More

It's not even American, really, after Canadian company snaps it up
By Polly Davis Doig,  Newser Staff
Posted Jan 15, 2017 7:37 AM CST
In this Wednesday, July 9, 2014, file photo, passers-by walk in front of the American Apparel store in the Shadyside neighborhood of Pittsburgh.   (AP Photo/Keith Srakocic, File)
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(Newser) – Ending a two-decade run of clothing made in California, American Apparel will shut its remaining 110 stores, reports the Los Angeles Times. The long-troubled company, which declared bankruptcy in 2015, has sold to Canadian clothing company Gildan Activewear for $88 million, a transaction that "was always about buying assets out of bankruptcy," per a Gildan rep. "The reality is this wasn't a purchase of an ongoing concern." Along with the shuttered stores, almost 3,500 employees will lose their jobs, notes Cosmopolitan. "[Gildan does] have a plan, and that plan doesn’t involve US manufacturing and certainly not Los Angeles manufacturing," says an investment banker not involved in the deal. Ousted founder Dov Charney made a hail-Mary bid to buy his former enterprise, but couldn't swing the financing. "This is not a business that should have gone out of business," he tells the Times. (Read more American Apparel stories.)

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