American Apparel declares bankruptcy

What the hell happened to the American Apparel we used to know and love? That serving just the perfect overpriced normcore outfits for the perfect hipster and showing off those witty, provocative ads? We might have to accept it’s over.

The famous brand has declared bankruptcy once again and Canadian company Gildan Activewear Inc. – known especially for the production of basic t-shirts and socks – struck a deal to buy it for 66-million dollars.

What declared American Apparel’s end? It looks like the brand just couldn’t keep the pace with the “internet revolution”. Just as happened with other companies, like Nasty Gal Inc. or Pacific Sunwear of California, Inc., the online sales couldn’t stand against the much higher numbers reached by its competitors and they started to fall head over heels.

Right now the chain includes 227 stores worldwide – 30 of which are in Canada. “We speculate that Gildan may maintain production of some higher-value-added signature products in Los Angeles, while shifting some products to facilities in Central America or Mexico,” analyst Keith Howlett explained “The American Apparel brand would, in our view, accelerate Gildan’s growth in the fashion basics segment of the U.S. print wear market and offer good potential in selected international markets.”