Amazon and Forever 21 are among the retailers reportedly circling in on American Apparel, launching offers to acquire the chain after it filed for bankruptcy last November.
According to Business Insider, the online retail giant and high street chain are also up against brand licensing company Authentic Brands Group and California-based clothing manufacturer Next Level Apparel.
Should a company wish to acquire American Apparel, they need to exceed a $66 million USD stalking horse bid from the Canadian company Gilda Activewear Inc, which was agreed when American Apparel filed for bankruptcy.
A “stalking horse” bid is a deal designed to test the market, ensuring that American Apparel receives the maximum amount of money for its assets when it goes to auction, which consists of a bidding process lasting a few weeks.
In December, American Apparel closed 12 out of 13 of its UK branches.