It's the end of a fashion era… kind of.
American Apparel is shutting down — or, more accurately, it's going to look very different — after being purchased at a bankruptcy auction by Canadian company Gildan Activewear.
Gildan, which makes t-shirts and other clothes themselves, has indicated that they will shut down American Apparel's 110 stores, as well as the factory in Los Angeles where the company had produced all of its clothing.
For $88 million in the bankruptcy auction, Gildan grabbed up all of AA's intellectual property, some manufacturing equipment, and more — but in the process of shutting everything else down, nearly 3,500 people could be out of work within the next few days.
Gildan spokesman Garry Bell discussed the purchase with the LA Times, saying: