Amazon and Forever 21 Inc. are both exploring bids for American Apparel LLC, according to a report from Reuters.
American Apparel has been in bankruptcy proceedings since mid-November. The deadline to submit bids for a bankruptcy auction is set for Friday. California-based apparel maker Next Level Apparel and Authentic Brands Group LLC, the licensor, are also said to be in talks about submitting bids.
Any offer would have to surpass a $66 million stalking horse bid by Gildan Activewear. As part of its bankruptcy filing, Gildan agreed to acquire the intellectual property rights related to American Apparel, along with “certain assets,” including some of its Los Angeles production and distribution operations and inventory. With no plan to acquire any of American Apparel’s retail operations, Gildan would explore re-positioning American Apparel as a wholesale brand.