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American Apparel seeks to close nine stores before January auction


The ongoing saga of American Apparel is slowly making its way to a final conclusion.

The beleaguered retailer is seeking court approval to shutter nine poor-performing stores by the end of December, prior to the auction of its business on Jan. 9, reported The Wall Street Journal, American Apparel filed Chapter 11 in November, its second filing in 15 months.

The retailer wants to close the nine locations because these stores are likely to be left behind by any retail purchaser, said restructuring adviser Joseph D’Ascoli in a filing with the U.S. Bankruptcy Court in Wilmington, Del., according to the report.

American Apparel already has received a $66 million bid for its brand name from Gildan Activewear Inc. Bids for some or all of the company’s assets are due Jan. 6.

American Apparel recently notified some 3,500 employees at its California manufacturing plant and wholesale operations that there was a possibility they could lose their jobs in connection with the bankruptcy.
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