Los Angeles Business Journal

Amazon and Forever 21 May Place Bids for Bankrupt American Apparel

By Caroline Anderson Friday, January 6, 2017
Coming Apart it Seems: Exterior of American Apparel’s downtown L.A. HQ, which touts firm’s made-in-America policy.

Coming Apart it Seems: Exterior of American Apparel’s downtown L.A. HQ, which touts firm’s made-in-America policy. Photo by Bloomberg News

Amazon.com Inc. and Forever 21 have joined the ranks of suitors interested in acquiring bankrupt clothing company American Apparel, Reuters reported on Jan. 4.

Los Angeles-based American Apparel, which filed for its second bankruptcy within a year in November, already has a $66 million stalking horse bid from Canadian apparel maker Gildan Activewear Inc. for its intellectual property.

Amazon.com Inc. and Forever 21 would have to beat Gildan’s bid and any deal would have to be approved by the U.S. Bankruptcy Court.

Staff reporter Caroline Anderson covers retail, restaurants, and hospitality. She can be reached at canderson@labusinessjournal.com.