Following its second round of bankruptcy and acquisition by Gildan, a Canadian manufacturer of low-cost apparel basics, American Apparel’s future has been up in the air. Gildan – which beat out other reportedly interested parties, such as Forever 21 and Amazon, with its $88 million bid – said in January that it would buy manufacturing equipment and intellectual property rights related to American Apparel, but would not assume the leases of the company's California manufacturing plants, fueling questions over where the clothing will be produced.
On Thursday, Gildan CEO Glenn Chamandy confirmed that the retailer will continue to manufacture at least some of its wares in the U.S. and will be sold at "price points relative to the competitive landscape.” According to Chamandy, "We're definitely going to manufacture product in the U.S.A. and support made-in-USA product. At the same time, we think that there's an opportunity to offer product that's more price centric and allow us to drive the potential of the brand."
The talk of more competitively priced wares suggests that Gildan, which manufactures a large portion of its own garments in low-cost settings, namely in Nicaragua, Honduras, the Dominican Republic, and Bangladesh, will explore international options, as well.
In other acquisition news, Boohoo.com plc announced earlier this month that the United States Bankruptcy Court for the Central District of California approved its purchase of Nasty Gal, a transaction that is expected to be completed as of February 28. Following Nasty Gal’s bankruptcy, UK-based Boohoo.com offered a $20 million stalking horse bid for the company’s intellectual property and customer database – but not its Kentucky distribution center or two retail leases in Los Angeles.
“We are delighted to have been successful in our bid to acquire Nasty Gal. It represents an exciting opportunity to accelerate our international offering and inspire an ever-growing range of young customers in the US and around the world.” said Boohoo’s joint CEOs, Mahmud Kamani and Carol Kane, earlier this month.