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American Apparel reopens stores post bankruptcy

American Apparel will open a flagship store later this year, its first foray into brick-and-mortar shops after all its locations closed following a bankruptcy process. It was bought by Canadian Gildan Activewear last year. Since purchasing American Apparel, Gildan integrated the brand into its own low-cost manufacturing chain and focused at first on selling blank T-shirts and other items to wholesalers, which customize them for sports teams or events. It then relaunched the brand’s US website in August and expanded online sales to 200 countries last month.

One store will be opened and that will be a test model. It could be a franchise, and a few more could be opened. Before bankruptcy, American Apparel’s clothes were produced in the US. Now most of the clothes are made at either Gildan’s factories in Central America or sub-contracted elsewhere.

In its heyday, American Apparel, based in the US, ran 280 stores and five factories. Gildan’s main line of business is clothing such as T-shirts, underwear and socks. It competes with Hanesbrands and Fruit of the Loom. The company is merging different business units and bolstering distribution to strengthen its e-commerce business. American Apparel also has given Gildan a foothold in the lucrative niche of fashionable basics.

 

 
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