Will Amazon Acquire American Apparel?

Internet giant Amazon is rumored to have made an offer to acquire American Apparel‘s bankrupt business. The acquisition would give a significant boost to their private brand aspirations but placing a known brand at the center of its millennial strategy.

It could also give them an asset in combating criticism from president-elect Trump who has criticized Amazon’s high penetration of for foreign manufactured product. With 4,500 workers, American Apparel claims to be the largest clothing manufacturer in North America as well as the “largest sewing facility in North America.”

Despite the rumor the only official bid, for American Apparel, is from the Canadian clothing brand Gildan, only includes the rights to American Apparel’s brand, with an option to buy its manufacturing operations and inventory. Gildan has no interest in American Apparel’s 110 retail stores.



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