American Apparel approved to take bids; auction scheduled for Jan. 9

By Caroline Salls

Pittsburgh, Dec. 5 – American Apparel, LLC received court approval of the bid procedures for the proposed $66 million sale of its worldwide intellectual property rights and some assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Gildan Activewear Inc. is the stalking horse bidder.

As previously reported, Gildan said it will also separately purchase inventory from American Apparel to ensure a seamless supply of goods in the printwear channel while the company integrates the brand within its printwear business. Gildan will not purchase any retail store assets.

If Gildan is not the high bidder for the assets, American Apparel will pay it a $1.98 million termination fee and reimburse up to $1 million of its sale-related expenses.

Competing bids are due by 3 p.m. ET on Jan. 6.

An auction will be held on Jan. 9, if necessary. The sale hearing is scheduled for Jan. 12.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel. The company filed for bankruptcy on Nov. 14 under Chapter 11 case number 16-12551.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.