Jan 10 (Reuters) - Canadian apparel maker Gildan Activewear Inc said it had won a bankruptcy auction to buy U.S. fashion retailer American Apparel for about $88 million in cash.
The deal is subject to approval from a bankruptcy court on Thursday, the company said.
Under the deal, Gildan will acquire the intellectual property rights related to the American Apparel brand and certain manufacturing equipment. The company , however, will not buy any of the 110 American Apparel retail stores.
Reuters reported late on Monday that Gildan had won the auction, which also attracted other bidders such as California-based apparel maker Next Level.
Guggenheim Securities, LLC is acting as Gildan’s financial adviser, while Sullivan and Cromwell LLP are providing legal advice. (Reporting by Siddharth Cavale in Bengaluru; Editing by Shounak Dasgupta)