Following its sale last week to a Canadian clothing manufacturer, American Apparel began laying off about 2,400 employees in Southern California, Reuters reported Monday. The majority were at the company’s downtown headquarters.

A judge approved Gildan Activewear Inc.’s $88 million bid for American Apparel’s intellectual property and some manufacturing equipment last week. The offer didn’t include the company’s manufacturing facilities.

More than 330 jobs could be saved through a preliminary agreement the company reached last week with Broncs Inc., a Compton textile company, to buy the Garden Grove manufacturing facility, according to The Wall Street Journal.