Gildan Activewear recently acquired US fashion brand American Apparel. Unfortunately they manufacture some products for the US brand outside the US. The Montreal, Canada based apparel, socks and innerwear manufacturer bought the bankrupt California based company for $88 million in a deal that does not include 110 American Apparel stores and its e-commerce website.
Gildan, however, will have a small American Apparel office in Los Angeles to keep the "heritage of the brand alive", while using social media platforms to promote it. American Apparel has been known for operating some of the largest private apparel-making units in the US. Gildan carries out most of its production activities in low-cost Carribbean and Central American countries. Socks is the only apparel item that the company manufactures in the US. It also makes yarn in North Carolina and Georgia.
By using Gildan's low-cost global manufacturing network, the company plans to expand American Apparel's offerings and promote the brand's international growth. Gildan, however, will continue contract based manufacturing in the US for American Apparel, while the products will be distributed through Gildan's extensive network.