Amazon and Forever 21 are among the companies weighing offers to buy bankrupt American Apparel, sources told Reuters. Bobbi Rebell reports.
Amazon and Forever 21 are weighing buying bankrupt American Apparel, sources told Reuters. The companies, as well as two others - Next Level Apparel, and Authentic Brands - are in talks with American Apparel and its financial advisers about submitting offers ahead of a deadline on Friday. Any successful offer would have to top a $66 million bid by Canadian apparel maker Gildan Activewear, which American Apparel agreed to when it filed for bankruptcy in November. Retail analyst, Mary Epner: (SOUNDBITE) MARY EPNER, CEO, MARY EPNER ANALYSIS, (ENGLISH) SAYING: "There's tremendous value, and it's one that has left investors a little sour over the years. But, at the heart of it, it's a great concept. First of all - made in America, very timely, especially with the latest selection, as you had mentioned previously. And number two - it's a T-shirt and graphic tee business. They're very profitable. There's a huge market for it. And there are so many possibilities of things they could do with it. And there are also a few other positives in relation to their supply chain. They've got that down to a science. And the final one, and probably the most important one, when we did our checks for back to school, believe it or not, they ranked in the top five of college kids and high school kids as a favored brand." American Apparel declined to comment. Amazon, Forever 21, Next Level Apparel, and Authentic Brands did not respond to requests for comment An outcome in the auction is expected next week.