American Apparel Closes Most U.K. Stores
L.A.-based fashion retailer American Apparel has closed all but one of its U.K. stores. The store closings resulted in a loss of 150 jobs, and this is just the beginning of global store closings for the company. In November, Canadian t-shirt maker Gildan Activewear bought the worldwide rights to the American Apparel brand, but does not want the group’s 230 global stores. Business in Spain, Japan,, Australia and Ireland has begun winding down and American Apparel in the U.S. already filed for bankruptcy.
Total Retail’s Take: Although the American Apparel brand was attractive enough to get a $66 million bid from Gildan, it’s clear that no one is interested in its stores. The latest bankruptcy is the second in a little over a year and American Apparel is now concentrating on shuttering stores and off-loading its intellectual property and inventory.