American Apparel, the beleaguered retailer with a history of risqué advertising, will close all 110 of its U.S. stores, but its brand name will live on.
On Jan. 10, Montreal-based Gildan Activewear acquired American Apparel for $88 million, a deal that includes American Apparel's intellectual property rights and manufacturing equipment. Both Amazon and Forever 21 bid for American Apparel as well, according to Reuters.
Gildan plans to add the American Apparel brand to its portfolio, which includes Gold Toe socks and Silks hosiery. Gildan also has licensing agreements with New Balance, Under Armour and Mossy Oak.
"We see strong potential to grow American Apparel sales by leveraging our extensive printwear distribution networks in North America and internationally to drive further market share penetration in the fashion basics segment of these markets," said Glenn Chamandy, president and CEO of Gildan, in a statement.
American Apparel founder Dov Charney was fired from the company as CEO in 2014 after several employee lawsuits for sexual harassment and a nude photo scandal involving an employee. Under Charney, the brand also faced criticism for its racy advertising. In the post-Charney era, American Apparel refocused, launching a new marketing initiative last year that included more sizing options with a renewed focus on its ecommerce and mobile efforts.