Amazon and Forever 21 eye American Apparel
January 5, 2017 05:00 PM
(Bloomberg)—Amazon.com Inc. and Forever 21 Inc. are considering making bids for bankrupt retailer American Apparel Inc., according to a person familiar with the situation.
Authentic Brands Group LLC, which owns Aeropostale and Juicy Couture, is also mulling an offer, said the person, who asked not to be identified because the discussions aren’t public.
American Apparel, No. 338 in the Internet Retailer 2016 Top 500 Guide with an Internet Retailer-estimated $62.1 million in online sales in 2015, filed for its second bankruptcy within a year in November with the intent to sell the company. Gildan Activewear Inc., a Canadian T-shirt and underwear maker, made an initial offer of $66 million for the brand and inventory but not any of the company’s stores.
Representatives for Amazon (No. 1 in the Top 500), Forever 21 (No. 272) and Authentic Brands didn’t immediately respond to requests for comment. A spokeswoman for American Apparel declined to comment. Reuters reported the potential bids earlier Wednesday.
Amazon is already making a push into physical locations. It has bookstores in San Diego, Seattle and Portland and plans to open one in New York City. Last year an executive for a mall operator said Amazon planned to open as many as 400 bookstores. The online retail giant is also testing a convenience store concept in Seattle called Amazon Go.
In addition to American Apparel clothing stores, the company has a wholesale division that sells blank T-shirts and other basics to screen printers. It makes its clothes in the U.S. at a factory in Los Angeles.