Amazon, Forever 21 Rumored Bidders for American Apparel
American Apparel has a few new rumored bidders. Reports say Amazon.com and teen apparel retailer Forever 21 are now among the companies vying to acquire bankrupt American Apparel LLC. Amazon and Forever 21 join the likes of Next Level Apparel and brand licensor Authentic Brands Group LLC in acquisition conversations with American Apparel.
Total Retail's Take: I think both Amazon and Forever 21 value and have a connection with American Apparel's target audience — millennials. This is particularly true for Amazon as it looks to further invest in its fashion business. However, each offer is going to have to be better than Gildan's current $66 million bid, as well as promise to keep American Apparel's Southern California warehouse open that employs about 3,500 workers. A deal with Gildan would make American Apparel one of the biggest garment makers in the U.S.