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According to sources familiar with the matter, American Apparel started to lay off staff on Monday this week after Canada's GildanActivewear withdrew an initial plan to purchase some of the bankrupt fashion retailer's manufacturing operations.
Just last week, Gildan won the rights to American Apparel's brand with an $88 million bid. According to sources, many of the over 2,100 employees at the company's headquarters in Los Angeles and nearly 1,000 employees at a manufacturing facility now stand to lose their jobs. In November 2016, American Apparel filed for a second time for bankruptcy protection with about $177 million in debt after the failure of a comeback plan.
n. 破產
