Controversial US fashion firm in web comeback

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 £67m 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 £460m 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.

American Apparel was founded in 1989 by Dov Charney

It was one of the fastest growing companies in the US by 2005

The brand came under fire for its sexually charged advertising

A ‘back to school’ advert was banned in 2014 for inappropriately sexualising girls

Boss Charney was also fired in 2014 for his unpredictable behaviour

He allegedly exposed himself to a female journalist and sent explicit texts to employees

American Apparel filed for bankruptcy last November and was put up for sale