MONTREAL—Gildan announces plans to enter an asset purchase agreement to acquire the global intellectual property rights related to American Apparel. The company estimates the purchase price at approximately $66 million.
In addition to the asset purchase agreement, Gildan plans to purchase inventory from American Apparel. A press release from Gildan states that the agreement does not include the purchase of any American Apparel retail stores.
The transaction is expected to close during the first quarter of 2017.
This announcement comes after months of major changes at American Apparel. In recent months, the company saw a changeover of its CEO and readjustments of financial status. A letter from Bradley Scher, chairman of the board at American Apparel, released by Forbes also cites official plans to file Chapter 11 as part of the transition.
This is a developing story, check back on this link for updates.
For more information on Gildan, visit: www.gildan.com