Layoffs begin as Gildan backs away from American Apparel factories

The jobs of 2,400 American Apparel factory workers in the U.S. are about to disappear after Gildan declined to take over the manufacturing plants. American Apparel LLC said it had started to lay off staff on Monday, after Canadian apparel maker Gildan Activewear Inc. withdrew its initial plan to acquire some of the bankrupt U.S. fashion retailer’s manufacturing operations.

Gildan Wins Auction to Purchase American Apparel

Apparel maker Gildan Activewear has won the auction to acquire the American Apparel brand and certain company assets with an $88 million cash offer. The transaction is subject to bankruptcy approval on Thursday and is expected to be completed by early February, Gildan said in a statement this morning.