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Gildan Wins American Apparel Bid

Now it's official. After months of speculation, Gildan Activewear has won the bid for Los Angeles-based wholesale giant, American Apparel. Despite the efforts of competitors, including Amazon and

Gildan Aquires American Apparel

Now it’s official. After months of speculation, Gildan Activewear has won the bid for Los Angeles-based wholesale giant, American Apparel. Despite the efforts of competitors, including Amazon and Forever 21, Reuters reported that Gildan Activewear successfully acquired the company for $88 million in a cash deal.

Gildan Aquires American Apparel

According to reports, Gildan Activewear will acquire the intellectual property rights for the American Apparel brand and certain manufacturing equipment, however, this deal does not include the purchase of any of the company’s retail outlets.

Representatives from Raymond James told Reuters that with Gildan Activewear holding a large stake in the basics sector of promotional apparel, this opens up opportunities for others to pursue options in fashion and activewear.

American Apparel

Given Gildan’s annual financial health report, this could be a golden opportunity. Gildan’s  latest market report showed that the company’s stock had dropped 11 percent over the last year. After word of the acquisition was made public, Gildan received a 3 percent increase, resulting in its biggest intraday percentage bump in the last 60 days.

The last component is that the acquisition must be approved in bankruptcy court, which is set for this Thursday.

For more information on Gildan Activewear, visit www.gildan.com.

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