Gildan Activewear Inc. acquires American Apparel, LLC for $88 million


Canadian apparel company Gildan Activewear Inc. said that it won a bankruptcy auction for American Apparel LLC and will buy the U.S. fashion retailer, its brand and certain assets for $88 million in cash.

Gildan, the stalking horse bidder for American Apparel, will buy American Apparel’s intellectual property rights, the American Apparel brand and certain manufacturing equipment, according to a statement.

The acquisition will need to be approved by the bankruptcy court in Delaware on Thursday to move forward, according to a statement. Assuming the court signs off on the transaction, Gildan expects to close the deal next month.

Gildan is advised by Sullivan & Cromwell LLP. Guggenheim Securities LLC is acting as financial adviser.

Jones Day advised American Apparel, LLC on the transaction with a team led by James Dougherty (picture), Carl Black and Scott Greenberg.

Involved fees earner: James Dougherty – Jones Day; Carl Black – Jones Day; Scott Greenberg – Jones Day;

Law Firms: Jones Day;

Clients: American Apparel;

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Author: Ambrogio Visconti