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.
Law Firms: Jones Day;
Clients: American Apparel;