MONTREAL — Gildan Activewear Inc. of Montreal confirmed this morning that it will pay $88 million to buy the American Apparel brand as part of bankruptcy court proceedings for the California-based clothing company.
Gildan (TSX:GIL) won't be buying any of American Apparel's retail assets but it does plan a separate purchase of inventory following court approval of the transaction.
The price announced by Gildan this morning is $22 million higher than its original offer announced in November. Media reports of the revised price began to emerge on Monday.
Gildan plans to integrate the American Apparel brand into its printwear business.
The company makes and distributes T-shirts, underwear, socks and other clothing under various labels including Gildan.
The Canadian Press