201787(月)

Embattled US fashion firm

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Embattled US fashion firm American Apparel poised for web comeback afer filing for bankruptcy last year

Fashion chain American Apparel is poised for a comeback.

The brand, which filed for bankruptcy last November, is to relaunch as an e-commerce business.

Canadian firm Gildan Activewear, which bought the 'intellectual property rights' of the firm for £67million in January – but not the stores – said it will be re-activating the website by next week.

Gildan's global production chain means it can produce clothes more cheaply and pass on the savings to customers.

It also works with a third-party manufacturer in the US to cater to the brand's 'Made in America ethos'.

It has previously said customers shopping on its website could be given an option to choose cheaper foreign-made products or pay a premium for goods made in the US.

American Apparel was once one of the fastest-growing companies in America and peaked at more than £460million in sales.

But the youth-focused firm was plagued by years of losses, rising competition and a rocky relationship with its founder Dov Charney.

American Apparel has also come under fire for its sexually charged advertising.

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