American Apparel To Begin Retail Stores Afresh In California

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The company that had done the phoenix act of ending up in flames has emerged out of bankruptcy to take the form of a retail store. It’s none other than American Apparel that was based in Los Angeles.  The brand plans to inaugurate its flagship store in California in the latter half of 2018. Earlier, all its stores had closed down in a bankruptcy process.

American Apparel is no owned by Gildan Activewear Inc. It’s a Montreal-based company that had purchased American Apparel in 2017. However, they had not bought the physical stores that had been auctioned then. The newly opened store will be complementing the e-commerce operations of the brand and will serve as a pilot case that will gauge the future trend.

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Gildan’s Chief Executive Officer (CEO), Glenn Chamandy said, “We’re opening one and that’s going to be like a test model store for us, and then we’re going to see where that takes us in the future.” He was speaking at a media interview at Montreal recently.  “We either could franchise, we could open a couple more, we haven’t decided yet,” he added.

The rechristening of the brick and mortar store will take place at Melrose Avenue located in California. It happens to be the location of the defunct American Apparel stores at the venue. Only thing the store that will open now will be a shade smaller in size. “It will allow customers to take part in the full American Apparel experience beyond just buying products,” Gildan spokesman Garry Bell said in an electronic communication.

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Gildan purchased American Apparel for USD 88 million and merged the brand with its existing low cost manufacturing chain. After the merger, it commenced producing blank T-shirts and other such items. These were supplied to wholesalers who in turn customized them for sports teams and events. The company’s main line of business in the garment sector is T-shirts, underwear and socks. Its main competitors are Hanesbrands Inc and Berkshire Hathaway Inc.’s Fruit of the Loom.

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