American Apparel has once again found itself in dire straits. Less than a year after ending its first stint under court protection, the company has filed to declare bankruptcy in America for the second time.
According to Bloomberg Markets, the fashion chain now plans to sell itself at auction, with Canadian T-shirt and underwear maker Gildan Activewear Inc. prepared to pay $66 million to acquire the brand and inventory supply. The offer would integrate the company with Gildan's own business and wholesale operations, but would not affect any AA stores.
Gildan has been at the forefront of the basics and materials game alongside the Los Angeles brand in recent years and made headlines when it was revealed to be the supplier behind Kanye West's extravagantly-priced Life of Pablo merch range.
According to the same report, AA is currently seeking a $10 million operating loan to keep it alive until the sale goes through. "The company faced unfavorable market conditions that were more persistent and widespread than the debtors anticipated," said company chief restructuring officer Mark Weinsten in a court filing. "These market conditions were particularly detrimental to retailers."
The rise and fall of American Apparel is both long and complicated. Read our parsed history here.