American Apparel's 'made in the US' heritage uncertain after Canadian deal

Montreal

AMERICAN Apparel LLC's made-in-the-US heritage is uncertain after Canadian apparel maker Gildan Ac-tivewear Inc won a bankruptcy auction to acquire the edgy fashion retailer for about US$88 million in cash.

Gildan said on Tuesday that it will buy manufacturing equipment and intellectual property rights related to American Apparel, but the Canadian company did not assume the leases of the retailer's California manufacturing plants, fuelling questions over where the clothing will be produced.