Jan 10 Canadian apparel maker Gildan Activewear
Inc 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.
Guggenheim Securities, LLC is acting as Gildan's financial
adviser, while Sullivan and Cromwell LLP are providing legal
(Reporting by Siddharth Cavale in Bengaluru; Editing by Shounak