American Apparel has announced it will sell its brand name to Canadian clothing manufacturer Gilden Activewear.
The deal, which will see Gilden acquire the brand for £52.6 million, comes as American Apparel enters bankruptcy for the second time in as many years.
Gilden have stated they will not be buying any of its 13 UK retail stores or any of its existing property.
It has stated that it will obtain “certain assets” from the fashion brand along with its intellectual property rights and existing inventory.
READ MORE: American Apparel appoints administrator placing 183 jobs at risk
Following the retailer‘s finalisation of bankruptcy proceedings, which will see KPMG act as administrator, Gilden plans to finalise the acquisition by early 2017.
It marks American Apparel’s second bankruptcy filing, having first sought court protection in October 2015 after flagging up problems with its finances months earlier.
Despite the brands intellectual property being sold, the KPMG have stated that the UK operations are still likely to be wound down jeopardising 183 jobs.
Keep up to date with Retail Gazette by liking us on Facebook
