American Apparel Will Be Withdrawn From The UK And European Markets.

　　 American Apparel LLC withdraws from Britain and Europe market In the face of the suspension, its German employees went on strike. The group currently has 8 stores and 100 employees in Germany.

In early November 8th of this month, American Apparel LLC chairman Bradley Scher sent a letter to its employees, saying it might sell or go bankrupt in the next 60 days, resulting in the closure of some business in Losangeles headquarters. In addition, the European retail business that the group has been struggling with is also facing a halt. American Apparel LLC said in its letter, "the potential buyers of the group will not be willing to maintain manufacturing operations or continue to support the operation of the manufacturing, wholesale and retail sectors". Therefore, once the transaction is concluded, the group may substantially reduce its headquarters and factory operation scale in two months.

On the day of November 8th, American Apparel LLC announced the closure of its business. The group has 13 stores in the United Kingdom, some of which are located in the retail area of gold, and now it is all taken over by the bankruptcy administrator KPMG. KPMG expects UK stores to open for Christmas and finish before New Year's day. After that, stores will be sold and employees will be disbanded.

In November 14th, American Apparel LLC formally filed for bankruptcy protection, the second bankruptcy in the past year.

But the bankruptcy is American Apparel LLC and Canada. clothing Part of the transaction agreement between manufacturer Gildan ActivewearInc. (TSE:GIL). Gildan ActivewearInc. announced the acquisition of intellectual property rights and certain assets of American Apparel brand with $66 million in cash, excluding any retail store assets, and the inventory will be purchased separately. According to the letter sent to employees by American ApparelLLC chairman Bradley Scher, Gildan ActivewearInc. is willing to retain part of the group's production, decoration and warehousing operations in Losangeles and its surrounding areas.

Gildan ActivewearInc. expects to complete deliveries in the first quarter of next year, but the bankruptcy court will require American Apparel LLC to auction. If Gildan ActivewearInc. fails to win the auction, a breakup fee can be obtained.

　　 American Apparel US business seeks bankruptcy and sells IP

During the current bankruptcy protection period, American Apparel LLC's US business will operate as usual, and BradleyScher said that day-to-day operations will not be significantly affected.

In the past two years, the United States has at least bankrupt 8 young clothing retailers including American Apparel LLC, A ropostaleInc., QuiksilverInc. and Pacific Sunwear of CaliforniaInc., and even the fast fashion chain brand Forever Forever, which takes the youth and the younger generation as its main group, is also in financial crisis. The fashion business operator also filed for bankruptcy last week, which fully demonstrates that no matter the number and the physical channel, or any business mode, it is difficult to do business.