Canadian basics brand, Gildan Activewear, has inked a deal to purchase the intellectual property rights of American Apparel for $66 million dollars, after AA filed for bankruptcy on Monday for the second time in just over a year.
According to 570 News, Gildan Activewear Vice President, Garry Bell, plans to maintain American Apparel’s identity as a label that’s made in the USA, however, he has yet to determine a production location.
Despite Bell’s declaration, some skeptics predict that Gildan will make only a small number of AA’s signature products in America, and transfer the rest of the manufacturing over to Gildan’s vast production network which includes factories in some of the poorest countries in Central America, the Caribbean Basin, and South East Asia.
It’s an especially troubling assertion considering the decades-worth of allegations Gildan has faced over poor working conditions and wrongful termination of union affiliated employees.
You can read more about the acquisition at 570 News.
