American Apparel Filed For Bankruptcy Again And Sold It For $66 Million.

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Brand American Apparel crashed.

Bradley Scher, chairman of American Apparel, who has been in constant twists and turns, issued a statement on Monday that the board meeting last Sunday decided to submit an application to the bankruptcy court again and sell it to the sports apparel group Gildan at a price of US $66 million.

The Gildan group, based in Montreal, Canada, is very similar to American Apparel, with a market capitalization of about 7 billion US dollars.

Sweaters, socks and underwear are the most basic apparel products, with over 40 thousand employees worldwide, including over 2500 employees in the United States.

Gildan Group acquired Alstyle Apparel LLC for us $110 million in May this year to expand product categories, such as wool manufacturing business.

Gildan group is expected to maintain the American Apparel brand in Losangeles and its surrounding parts of manufacturing, distribution and warehousing business.

Bradley Scher called the decision the best option to retain the brand heritage of American Apparel.

Since American Apparel has filed for bankruptcy protection for a long time, any paction must be approved by the judge of the bankruptcy court.

If approved, Gildan group will become a bidder in the auction, which will also arouse interest in those who are willing to take over American Apparel brand potential investors.

Bradley Scher revealed that although the company has reached an agreement with Gildan group, it does not exclude potential buyers to offer better terms of trading than Goldan group.

Bradley Scher stressed in the statement that formal trading takes time to complete and will do its utmost to retain all staff positions. Currently, American Apparel has nearly 6000 employees worldwide. However, some people in the industry say this guarantee is unrealistic. Employees of the company revealed that last week they had received warning letters from Craig Simmons, head of brand human resources, indicating that some of the poor retail outlets might be closed, and the business of brand Losangeles headquarters would also be reduced.

Last week, American Apparel stopped sending products to brand stores in the UK, Australia and Canada, and sold the remaining 13 stores in the UK to KMCP for sale and decided to withdraw from the UK market.

In the same week, the judge of the bankruptcy court ordered American Apparel to pay $2 million 30 thousand to the FTI consulting firm within 30 days, and to pay $1 million 250 thousand to the unsecured creditors Committee.

American Apparel was founded in the United States in 1986 by Dov Charney. At the peak of its brand, American Apparel has a market value of more than 500 million US dollars and has a turnover of more than 600 million US dollars, but now its brand income has been severely reduced, and it has fallen into too much inventory surplus and inefficient corporate quagmire. The company began to lose money in 2009, and last year's American Apparel recorded a loss of up to 75 million dollars.

The company is trying to pform from the sexy clothing style of Dov Charney in power. Anonymous sources expect the brand to have less than $400 million in revenue this year.

Because the share price has been lower than a dollar for a long time, American Apparel was eliminated by the NYSE in November 6th last year.

Only 6 months after American Apparel first declared bankruptcy, the founder and chief executive, Dov Charney, finally decided to step down because they could not reverse the company's losses.

In August, it was reported that with the support of investment company Hagan Capital Group and Silver Creek Capital Partners, Dov Charney was building a new clothing company. He wanted to repurchase American Apparel company at the price of US $300 million, but finally, the company refused its purchase request.

At present, various public information shows that American Apparel is heavily indebted and its selling price is shrinking.

American Apparel, which is famous for its full suggestive advertising, has been strongly sought after by young consumers at that time. But in recent years, the youth clothing retailing in the United States has been losing the market share by the vigorous development of e-commerce and fast fashion, especially H&M and Zara.