Gildan Activewear will relaunch American Apparel. The relaunch will begin with a new e-commerce website within the next two weeks and, behind the scenes, there will be increased shipments to wholesalers. The collection will remain in line with the original American Apparel brand and include T-shirts, sweatshirts, jeans, and more.
Gildan bought the once high-flying retailer for $88 million at a bankruptcy auction earlier in the year. American Apparel once had annual revenues of over $600 million but struggled to stay afloat due to a crippling $300 million debt, dropping sales, and crashing share price.
American Apparel, based in Los Angeles, began as a wholesale T-shirt business in 1998. But the hoped-for turnaround of the clothing manufacturer and retail chain—which has long grappled with shrinking sales and an outsize store footprint—did not happen. A plan to improve online selling didn't pay off, and, at a time when shoppers are going online in greater and greater numbers, American Apparel watched its online sales fall.
The teen retailer, founded in 1989, was known for its sexually charged advertising. The hoped-for turnaround of the clothing manufacturer and retail chain—which has long grappled with shrinking sales and an outsize store footprint—did not happen.
