American fashion chain American Apparel seems to be throwing in the towel, seemingly so after Canadian Gildan Activewear was announced as the brand’s new owner.
Layoffs at the factories too
Gildan Activewear was unveiled as the bankrupted brand’s new owner, after an 88 million dollar (82.5 million euro) bid. It immediately announced it did not plan to keep the 110 American Apparel stores open, which meant the end for 3,400 employees. Starting this week, the chain actually began its store closures.
Originally, the Canadian company did say it would take into account the brand’s heritage and keep a large part of its production process in the United States, but it now seems to backtrack. 2,400 out of 3,000 jobs will be cut in its manufacturing plants and at its main office in California. Gildan’s production facilities are mostly located in low-wage countries and it seems it intends to do the same with American Apparel.
