Montreal-based activewear brand Gildan has entered into an asset purchase agreement to acquire the worldwide intellectual property rights and certain assets of the American Apparel brand for approximately $66 million in cash.
Also Monday, American Apparel filed for bankruptcy protection under Chapter 11 — its second Chapter 11 filing in a little over a year. The retailer emerged from bankruptcy as a private company this past February.
Gildan will separately purchase inventory from American Apparel in the printwear channel, but will not buy any of its stores.