BI Chinese station on January 5th reported
Reuters quoted sources as saying on Wednesday, the electricity supplier giant Amazon and fast fashion brand Forever 21 and other companies are considering the purchase of the bankruptcy of the U.S. apparel brand American Apparel.
The sources said, in addition to Amazon and Forever 21 Next Level Apparel, California clothing brand and brand management company Authentic Brands Group and American in Apparel and its financial adviser on Friday closing contact before the date of submission of quotation.
The so-called horse auction, refers to a bankrupt company choose to set a minimum bid price of an interested company. In this way, other potential bidders do not offer less than the price of the acquisition.
Gildan's proposed agreement includes the retention of American Apparel in a manufacturing facility in southern California, which employs about 3500 people. The factory also makes American Apparel one of the largest clothing manufacturers in the United states.
However, sources said that if the Gildan auction successful, its plans to retain only part of the American Apparel plant in California, because many of the Gildan plant is located in countries with low labor costs.
Sources said the final results of the auction is expected to be announced next week.
American Apparel declined to comment. Amazon, Forever 21, Next Level Apparel and Authentic Brands did not respond to requests for comment.
Gildan said on Wednesday that the company through the due diligence of all the necessary information, so that they are in the best position in the auction.
Amazon's acquisition of American Apparel will be a major step forward in the company's own fashion brand. The company has launched its own brand of merchandise last year.
Forever 21 is a cheap clothing brand founded by Won Zhang Dongwen Chang, a South Korean Do, thanks to cheaper labor abroad. American Apparel first filed for bankruptcy in 2015, in part because of its relatively high labor costs.