Having acquired American Apparel at a bankruptcy auction earlier this year for $88 million, Montreal based sportswear brand Gildan Activewear Inc. is now ready to re-launch the e-commerce website which is due to go live on the 14th of August.
It’s been a turbulent few years for American Apparel. It went bankrupt, went bankrupt again, was bought out of bankruptcy by Gildan, and then shuttered its LA HQ and all worldwide stores as the acquisition didn’t include American Apparel retail spaces.
Renowned for its manufacturing ethic, American Apparel had all its products made in the US. However, Gildan plans to use its global production chain to produce American Apparel clothes abroad for price-conscious wholesalers, whilst simultaneously working with a third-party manufacturer in the US to produce a ‘Made in the USA’ line to accommodate consumers partial to locally made products.
Having bought over American Apparel for $88 million at a bankruptcy auction in February, the chief executive of Gildan, Glenn Chamandy is positive about the re-launch: “At the end of the day we will do very well with this brand.” In an interview with Business of Fashion, Chamandy reveals his hopes for the high-flying retailer revealing, stating, “This will hopefully be one of the best acquisitions the company has ever made, in terms of return on investment.”
Whilst there is wide speculation as to exactly what the e-commerce website will sell, Chamandy has every confidence in its success: “We’re going to continue to focus on our distribution. We’re going to focus on our direct to consumer. We’re going to expand internationally.” Chamandy has also alluded that he plans to keep some classic American Apparel items on the new online store.
The bankruptcy of American Apparel came after the firing of CEO and founder Dan Charney. Charney, who was let go in a whirlpool of debate involving several sexual harassment accusations, is now in the midst of starting a new company, Lost Angeles Apparel.