American Apparel closing stores in Europe
Under Chapter 13 bankruptcy, American Apparel was bought by Canadian brand Gildan Activewear Inc. last month. As part of the agreement however, Gildan only purchased American Apparel’s intellectual property and manufacturing equipment for $88 million, choosing to discontinue American Apparel’s retail presence.
In France, American Apparel’s brick-and-mortar stores are currently being closed, while the rest of Europe is expected to see the same fate. Though German administrator Dr. Wolf-Rüdiger von der Fecht, in charge of the European structure, says that they are currently negotiating options for a reduced number of American Apparel stores, most American Apparel stores are currently closing across Europe.
Five of the seven stores currently located in Germany have shuttered, while stores in Vienna, Zurich, Stockholm and Amsterdam have closed.
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