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American Apparel Brand Returns to Retail

Montreal-based Gildan Activewear (asi/56842) plans to publicly sell some American Apparel clothing online beginning on August 14, according to a report in the Los Angeles Business Journal. Currently, American Apparel clothing is only available at wholesale through authorized dealers, including some promo product suppliers.

“With a new and improved supply chain, we will be incorporating our classic style with consistent sizing across all garments for women and men at a more affordable price point,” Gildan said in a statement. 

Earlier this year, Garry Bell, Gildan’s VP of Corporate Marketing/Communications, told Counselor that 2017 would be a transition year as the firm works to overcome a variety of challenges, like inventory levels that were inherited when it bought American Apparel out of bankruptcy. “2018 is when you’re really going to see the added value that Gildan will bring to the brand,” he said. In an interview with Bloomberg in May, Gildan CEO Glenn Chamandy said his company planned to give online customers the option to buy some USA-made American Apparel clothing for a higher price. It’s unclear, though, whether the August 14 launch will include garments manufactured in the States.

In a February auction, Gildan purchased American Apparel – which filed for bankruptcy last November – for $88 million. Gildan’s acquisition did not include American Apparel’s retail stores or its distribution center, production facilities or Los Angeles headquarters. All of the brand’s more than 100 retail stores have since been closed.