Amazon Contends Against Forever 21 Over American Apparel Auction; Gildan Activewear Promises More Job Opportunities

By Kath Bane | Jan 06, 2017 07:22 AM EST

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After American Apparel filed bankruptcy, Amazon and Forever 21 are just two of the companies that showed interest in acquiring the company. American Apparel is under auction, which is sought by various companies.

According to the NY Mag, Amazon is expanding the line of business towards fashion clothing and apparels. They are reportedly making private-labeled brands and it was indicated that the company plans to establish activewear clothing. The said plan is meant to contend with renowned brands such as Nike.

After Donald Trump warned big companies over tax responsibilities and job opportunities in America, US manufacturers are shuddering. Experts are indicating that Trump is adamant in implementing his plans once he takes over. Thus, this acquisition will be beneficial just like what Trump wants to keep jobs open in the United States.

Meanwhile, Reuters reported via Yahoo News that Forever 21 and Amazon will be contending with Next Level Apparel and Authentic Brands Group LLC. Before American Apparel filed for bankruptcy, they signed a $66 million bid with Gildan Activewear Inc., excluding 110 retail chain stores. Hence, the victor of the auction will be working with the Canadian apparel maker.

The company, however, cleared out that the manufacturing plant will remain in South California since it is "one of the biggest garment makers in the United States." In fact, the company has employed about 3,500 workers. This will give more job opportunities to the Americans. According to the source, Gildan will have a minimum wage hike up to $15 per hour in 2022 in the California firms.

On one hand, it is believed that this will be a major advancement for the Seattle-based company, Amazon. On the other hand, Forever 21 will be able to reduce the high labor costs of the American Apparel. The company is particularly recognized for its low retail costs.

Gildan has yarn-spinning and distribution hubs in North Carolina and Georgia. Sources say the victor of the auction will be announced next week.

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