Canadian apparel maker Gildan wins auction to buy American Apparel

Reuters News
Posted: Jan 10, 2017 7:26 AM

(Reuters) - Canadian apparel maker Gildan Activewear Inc <GIL.TO> said it had won a bankruptcy auction to buy U.S. fashion retailer American Apparel for about $88 million in cash.

The deal is subject to approval from a bankruptcy court on Thursday, the company said.

Under the deal, Gildan will acquire the intellectual property rights related to the American Apparel brand and certain manufacturing equipment. The company , however, will not buy any of the 110 American Apparel retail stores.

Reuters reported late on Monday that Gildan had won the auction, which also attracted other bidders such as California-based apparel maker Next Level.

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Guggenheim Securities, LLC is acting as Gildan's financial adviser, while Sullivan and Cromwell LLP are providing legal advice.

(Reporting by Siddharth Cavale in Bengaluru; Editing by Shounak Dasgupta)