Gildan to continue making American Apparel clothes

MONTREAL The head of Gildan Activewear says he plans to continue making some lines of American Apparel in the United States, but will also use Gildan’s low-cost global production networks to expand its offerings and pursue the brand’s international growth.

“We’re going to continue to support our core Made in USA business, but we’re also going to offer product where they couldn’t compete before at price points relative to the competitive landscape,” CEO Glenn Chamandy said Thursday during a conference call about its fourth-quarter and 2016 results.

The Montreal-based maker of apparel, including T-shirts, socks and underwear, recently bought the bankrupt California-based clothing company for US$88 million in a deal that excludes American Apparel stores and its e-commerce site.

Founded by Quebec native Dov Charney in 1989, American Apparel rose to prominence after opening manufacturing facilities in Los Angeles and attracting a young clientele with the adoption of sexually provocative advertising.

It twice entered bankruptcy protection over the past two years, culminating in its auction to Gildan.

Gildan said it’s still developing American Apparel’s consumer strategy but plans to use social media to drive the brand’s image.

Manufacturing in the U.S. will be contracted out to undisclosed producers and distributed through Gildan’s extensive network. The firm said it hasn’t decided which factories in the Caribbean or Central America will make the clothes.

It anticipates sales of Gildan’s highest price line of products will be US$50 million to US$75 million this year or around US$100 million for a full year. But the company foresees opportunities to expand sales in North American and internationally, especially in Europe where fashion-style clothing are a bigger share of the market.

“We have huge interest from all of our international customers to carry this brand,” Chamandy told analysts.