American Apparel To Close All Remaining Stores
Photo: Yale Daily News
Founded in 1989, American Apparel quickly became known for their trendy, yet comfortable and basic, clothing. The brand will always be remembered for its ground-breaking stance: “Made in America – Sweatshop Free”, as well as their risque ad campaigns which resulted in much debate – but ultimately soaring sales.
Sadly in the past few years scandals rocked the company, with the founder and CEO being ousted in 2014 after harassment allegations, followed by two different bankruptcies in less than two years. The company was forced to close several stores to try to re-coup costs, but newer additions to the retail market, such as H&M and Forever 21, also offered trendy clothes, at even lower prices, and American Apparel was never quite able to catch up and compete.
As of January 10, 2017 Canadian manufacturer Gildan Activewear acquired the companies intellectual property and manufacturing equipment. It did not though acquire the chain’s remaining stores, L.A. headquarters, or manufacturing in the United States. Reports say though, without a buyer, the stores will liquidate and be closed by April. With several months before the final door shuts, everything on AA's website is an currently 50% (code: TAKE50) off with certain items additionally marked down.
“This was always about buying assets out of bankruptcy,” Gildan spokesman Garry Bell told the L.A. Times. “The reality is this wasn't a purchase of an ongoing concern.”
RELATED ARTICLES |
| American Apparel Currently 40% off! Code: TAKE40 » |
Gildan Activewear, who also owns Silks hosiery and Gold Toe socks, is generally associated with selling their wares at stores like Target and K-Mart. “The political climate in the U.S. has made things very fluid for a lot of companies,” Bell said in the same statement. “We will evaluate all these options.”
