Gildan Activewear closes American Apparel acquisition

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By Ted Liu

Gildan Activewear Inc. (TSX/NYSE: GIL) has completed the acquisition of the American Apparel brand and certain assets from American Apparel, LLC.

American Apparel voluntarily filed for Chapter 11 bankruptcy protection on November 14, 2016.

On November 14, 2016, Gildan entered into an asset purchase agreement (APA) to acquire the worldwide intellectual property rights related to the American Apparel brand and certain assets for a cash purchase price of approximately US $66 million.

On January 10, 2017, Gildan emerged as the winner in the court supervised auction to acquire the American Apparel brand and certain assets, subject to approval by the bankruptcy court and other customary closing conditions.

photo credit: American Apparel