Amazon'S Acquisition Of AA Just Can Please Trump?

According to the world clothing shoes and hats net,

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Considering the acquisition of bankrupt american apparel retailer American Apparel.

And its Authentic Brands group, which owns Aeropostale and Juicy Couture brand, is also interested in the acquisition.

In 2015, the electricity supplier's sales volume was estimated to be $62 million 100 thousand. It applied for second bankruptcy liquidation in November last year, which is intended to sell the company.

Gildan Activewear, a Canadian T-shirt and underwear manufacturer, has offered a preliminary bid of $66 million for American Apparel's brand and inventory products, but does not include any American Apparel entity store.

Amazon, Forever21 and Authentic Brands representatives did not immediately respond to requests for comment, while American Apparel spokesmen declined to comment directly.

Amazon's acquisition of American Apparel can just please Trump?

Amazon's takeover rumour immediately reminded people of the growing ambition of Amazon in the fashion industry.

But buying a bankrupt clothing retailer may solve one of the biggest problems facing Amazon today: tensions with Trump.

Trump often criticizes Amason during his election campaign.

And he was able to win the presidency, largely because he had promised to keep American manufacturing jobs in the United States.

Trump has successfully blocked tens of thousands of machines from the United States, including the one thousand jobs of Carrier, the air conditioning manufacturer, in Indiana, instead of going to Mexico.

American Apparel is famous for its "made in the United States" slogan. It also claims to be the largest clothing manufacturer in North America and has 4500 workers. It also calls itself "the largest sewing machine in North America".

In addition to physical stores, the company also has a wholesale department dedicated to the sale of white T-shirts and other basic items for screen printing, while its clothing production in the United States is made by factories in Losangeles.

Therefore, by acquiring American Apparel, Amazon can retain thousands of US manufacturing jobs and win Trump's support.

If the takeover price of American Apparel is $66 million, Amazon may win a huge victory at a relatively low bid price.

According to Reuters, Amazon has about 12 billion dollars in cash in the balance sheet at the end of the latest quarter.

Amazon may have to convince shareholders of the logic behind its acquisition of a bankrupt garment company with billions of dollars in debt.

It is reported that Amazon has also accelerated investment in other areas, such as logistics and grocery stores, so investors may not accept the idea that Amazon has to shoulder the huge losses of American Apparel.

But if Amazon can somehow take all the factories and retail stores of American Apparel, besides Amazon's political and public relations benefits, Amazon will also get many potential commercial benefits, especially when considering that Amazon is expected to exceed Messi's department store to become the largest clothing retailer in the United States in 2017.

Increasing its influence in the physical store: Amazon has been introducing proprietary brands in the past year.

By adding physical stores to display products, it can significantly improve its sales and brand awareness.

It has a physical bookstore in Santiago, Seattle and Portland, and plans to open a new bookstore in New York.

Last year, an executive at a supermarket operator said that Amazon plans to open as many as 400 physical bookstores. It has also opened a convenience store called "no queuing, no checkout" Amazon Go in Seattle.

More channels to promote Prime: Amazon's bookstore is almost exclusively for its Prime membership, which has become another channel for Amazon to promote Prime's various benefits.

The retail network with American Apparel can help Amazon promote Prime in other parts of the United States.

Solving the biggest structural defect of online clothing sales: most people still want to try on clothes before buying clothes, and they also like to go back to the physical store to experience it.

The acquisition of American Apparel's physical stores will be able to solve these two problems.

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