American Apparel denies reports that it's imminently shutting down all of its stores


American Apparel isn't shutting down all its stores - at least not yet, despite some reports saying otherwise.


The bankrupt company recently reached a deal to sell intellectual property and other assets to Canadian company Gildan Activewear.

The deal did not include American Apparel's 110 stores.

Without a buyer for the stores, American Apparel will likely be forced to eventually shut them down.

But that won't happen for at least another three months under a 100-day license with Gildan, American Apparel spokeswoman Arielle Patrick told Business Insider. The company hasn't shut down any stores since the nine closures it announced in October, she said.


It's unclear what will happen to the stores once the license expires. Patrick declined to comment further. Gildan did not respond to a request for comment.

Gildan spokesman Garry Bell told Bloomberg, however, that the company never intended to acquire American Apparel's stores.

"We've never been in a position to be able to assume operations," Bell said. "We're not buying an ongoing concern."

If American Apparel closed all its stores, about 2,000 workers would be laid off.

The company has already started laying off about 2,400 employees in Southern California who worked at its headquarters and nearby factories, which were also omitted from the deal with Gildan, according to The Los Angeles Times.


Regardless of the retailer's fate, customers can expect to see deep discounts in stores and online over the next couple months. On Tuesday, the website was running a 40% off sale on its entire website.

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