American Apparel is Going to Come Back Under New Ownership

Here’s some light to brighten the darkness of our times: American Apparel will rise again. Gildan Activewear Inc., which purchased the brand earlier this year when it went out of business – due to declining sales and a scandal with original founder Dov Charney – explained their plans to relaunch AA online by the end of the year.

“At the end of the day we will do very well with this brand,” said Glenn Chamandy, Chief Executive of Gildan, to Business of Fashion. “This will hopefully be one of the best acquisitions the company has ever made, in terms of return on investment…so we’re very excited about it.”

Gildan is already selling American Apparel basics to wholesalers, but hopes to expand their product lines for direct-to-consumer purchase.

“We’re going to continue to focus on our distribution. We’re going to focus on our direct to consumer. We’re going to expand internationally,” said Chamandy about his future plans with the brand. “We think that this could be quite big as we go forward.”

Charney has also launched his version of a revivial of the iconic brand…he now has a small company called Los Angeles Apparel. But Chamandy doesn’t seem too concerned about his competitor.

“Good luck to him,” he said. “But at the end of the day we’re well positioned. We have a significant investment and capital able to support our brand.”

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