American Apparel has filed for bankruptcy … again; its second time in just over a year. The second bankruptcy comes as the retailer struggles to overcome years of losses and rising online competition. Known for its sexually charged advertising and dometically-manufactured garments, the Dov Charney-founded brand, listed assets and liabilities in the range of $100 million to $500 million, according to a Delaware court filing.
Separately, Canadian apparel maker Gildan Activewear Inc said it agreed to buy intellectual property rights related to the American Apparel brand and certain assets from American Apparel for about $66 million in cash. Gildan will not be purchasing any retail store assets, it said in a statement.