Gildan Activewear Acquisition Of AA For The Second Time For Bankruptcy.

The bankruptcy court only approved Canada last Thursday.

The manufacturer, Gildan Activewear Inc. (TSE:GIL), bought the American Apparel LLC, the second bankruptcy filing at the end of last year, for $103 million. The teenage apparel retailer began mass layoffs this Monday.

According to the world clothing shoes and hats net, U.S. time Monday morning 5.

LLC employees have queued up at Losangeles's offices and factory headquarters for final pay.

A group spokesman, Arielle Patrick, said that 2400 workers were disbanded in the south of California, and the remaining 1000 employees would depend on the processing of South Gate south gate factory.

American Apparel LLC had filed with the California authorities before filing bankruptcy in November last year. It warned that bankruptcy and selling could lead to unemployment of 2166, 959 and 322 employees hired by Losangeles headquarters, south gate factory and Garden Grove Garden Grove factory, which together affected 3457 people.

Gildan Activewear Inc. has withdrawn plans to buy part of the American plant of LLC Apparel LLC.

The group beat Next Level Apparel, a local clothing manufacturer in California, in a bankruptcy auction last Monday, and will buy American Apparel for $88 million.

Intellectual property rights, plus $15 million to purchase inventory.

In the three factories, only Garden Grove factory will be taken over by Broncs Inc. for 20-25 US dollars (excluding factory equipment), American Apparel LLC and Broncs Inc. have reached a preliminary agreement last week, the factory will continue to be used for knitting and dyeing workshop, Broncs Inc. will hire about 200 American Apparel Apparel employees.

In addition, the 110 stores of American Apparel LLC are not in the acquisition scope of Gildan Activewear Inc..

According to the interim agency agreement signed between the two sides, these stores will continue to operate in the next 100 days until April.

At the same time, American Apparel LLC is selling some shop tenancies and equipment to other buyers.

Two shopkeepers of the brand's Chicago and Nashville stores have bought the lease on Monday's bankruptcy auction, which cost a total of $440 thousand.

At this point, the "Made in USA (American made)" brand tenet and principle that American Apparel LLC is proud of as the largest American garment manufacturer has gone bankrupt with the company. In addition, after the founder, Dov Charney, it has been expelled from the board and management layer, the brand publicity route changes, the retail network of the brand image is now facing bankruptcy, and the American Activewear which belongs to Gildan Activewear Inc. will only be a drive out of the soul.

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Although Gildan Activewear Inc. has promised to retain part of the US capacity, some analysts believe that even so it will only be a symbolic quantity. In fact, "made in the United States" or not, they already know.

The group spokesman, Garry Bell, said last week that it still did not decide where the future of the American Apparel brand would be. In view of the change in the US political environment in the era of the US President elect Donald Trump Trump, he did not rule out the manufacture of some products in the United States.

American Apparel LLC, former chairman and chief executive officer Dov Charney, also appeared in the group headquarters in Losangeles on Monday. He also asked the fired workers to work on his new T-shirt brand.

However, he said he was only able to hire dozens of people during his visit.

Some workers revealed that American Apparel LLC did not provide severance payment, while an old employee who had served the group for 20 years said that everyone felt "very, very sad" about this difficult situation.

According to the world clothing and shoe net, Forever 21 Inc., a fast fashion retailer accused of bidding for American Apparel LLC, has launched recruitment activities at the Losangeles headquarters of American Apparel LLC, hoping to absorb the group's IT, accounting, design and other professionals.

California local employers such as Cowboy brand Lucky Brand LLC and so on are also pursuing "American Apparel LLC" employees.

Most of the production facilities and close to 9 of Gildan Activewear Inc. workers are in low-cost countries such as the Caribbean and Central America, while spinning factories and distribution centers are concentrated in low-cost domestic states such as North Carolina and Georgia.

Garry Bell, a spokeswoman for the group, said that they had only planned to acquire American Apparel LLC assets from bankruptcy auctions, adding American, Apparel, and so on to a "premium brand" that complements the group's printing T-shirt business and never plans to continue American Apparel LLC.

American Apparel LLC was founded in 1989 by Dov Charney and founded in 1997. In 1997, it was one of the largest vertically integrated garment manufacturers and retailers in North America. In 2013, the Group recorded the highest annual sales of $633 million 900 thousand, but it has been losing money since 2010.

American Apparel LLC, which was first submitted to bankruptcy in October 2015, revealed that the group began to go downhill because its legal employment of 1800 employees in 2009 was negated by the United States and the immigration and Naturalization Service. The group was forced to dismiss the employees who accounted for more than 1/4 of the total number of manufacturing workers at that time, resulting in a delay in production and a 90% drop in profits during the year.

In addition, the group's global expansion of retail debt also exacerbated its financial difficulties. The American Apparel stores around the world once reached 230.

In February 2016, American Apparel LLC broke away from its first bankruptcy after the debt restructuring and got rid of the $230 million debt. Its majority stake was then controlled by the former creditors Monarch Alternative Capital LP, Standard General LP, Monarch Monarch, the company and the company.

But Paula Schneider, which succeeded Dov Charney as CEO, not only failed to lead the group to improve its performance, but also exhausted its cash flow. American Apparel LLC applied for bankruptcy second times in November 2016, when debt was about 170 million dollars.

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