American Apparel sells IP rights to Gildan Activewear
Client(s) American Apparel, LLC
Jones Day represented American Apparel, LLC ("AA") in its second chapter 11 case, which was filed on November 14, 2016. The strategy for this case centers around the stalking horse bid of Gildan Activewear SRL, which was negotiated before the filing. Gildan agreed to purchase AA's intellectual property for $66 million and certain of their wholesale assets for additional consideration, subject to higher or better bids received in a court-approved sales process. On January 9, 2016, Gildan emerged as the winner in the auction to acquire the American Apparel brand and certain other assets with an $88 million topping bid after a competitive auction was held, resulting in a net increase of approximately $22 million to the estate.