American Apparel Sold to Gildan Activewear

American Apparel (Los Angeles) has entered into an agreement to be purchased by Gildan Activewear (Montreal), after having filed bankruptcy.

Gildan has agreed to pay $88 million to purchase the brand and some of its manufacturing equipment; it will not be purchasing its 110 brick-and-mortar U.S. stores or any of its manufacturing or distribution centers.

Gildan’s spokesman Garry Bell explained, “This was always about buying assets out of bankruptcy.”

The deal is still subject to approval by a bankruptcy judge, but the deal is expected to close next month. Until then, American Apparel has a lease to keep its stores open for 100 more days, reports Richmond Times-Dispatch.