American Apparel filed for bankruptcy for the second time in a little more than a year.
Gildan Activewear will acquire assets and inventory from American Apparel for roughly $66 million, The Wall Street Journal reports.
American Apparel exited court protection earlier this year but did not stay financially stable for long. The store said it hopes to stay in business, but having filed for bankruptcy twice and with $215 million in listed debt, its future is unclear.
A history of controversy
American Apparel made headlines long before the bankruptcy struggles. In 2014, then-CEO Dov Charney was fired after being accused of sexual harassment.
Swimsuits in September
After it filed for bankruptcy the first time, business strategy problems were also exposed, like advertising swimsuits in September. The strategy to rebound after the first bankruptcy "completely failed," chief restructuring officer Mark Weinsten said.
American Apparel already placed its British stores into the U.K.'s equivalent of chapter 11 bankruptcy protection earlier this month, the Journal reports.
Some fans found a silver lining.
American Apparel is closing down because bankrupt... oh well who ever told you that it was a good idea to sell a plain white tee £40?— Ber 👑 (@needLullaby) November 11, 2016
Others had no sympathy.
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