2017-01-14salon.com

Gildan's purchase agreement covers American Apparel's assets, including most of its manufacturing and distribution equipment. Gildan bought American Apparel's existing inventory in a separate deal. But the company has declined the option to assume the leases of two Los Angeles manufacturing facilities that employ nearly 1,300 factory workers.

Gildan also declined the lease on American Apparel's headquarters, which employs nearly 2,200 people. The downtown offices will continue to manage the company's retail operations and website, but in December American Apparel warned all its Los Angeles-area employees that they may lose their jobs. Though the company might retain some operations in the United States, analysts expressed skepticism to the Los Angeles Times that any of American Apparel's current U.S. manufacturing workers would keep their jobs, speculating that Gildan would likely move factory work to its existing facilities in Honduras and the Dominican Republic.



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