January 17, 2017
Compton, CA-based Broncs Inc. is acquiring American Apparel’s textile facility in Garden Grove, CA. Located at 12641 Industry St., the roughly 100,000-square-foot knitting and dyeing factory deal could be valued between $200,000 and $250,000, and may preserve jobs.
The preliminary deal for the facility was revealed during a hearing in U.S. Bankruptcy Court in Wilmington, Del. More than 330 workers at the Garden Grove facility were expected to lose their jobs as a result of American Apparel’s Chapter 11 bankruptcy.
The clothing company filed for bankruptcy late last year, and warned employees they could be laid off. The company said preserving jobs was a priority in the facility sale process.
A bankruptcy judge approved Gildan Activewear Inc.’s roughly $103-million bid for American Apparel’s brand name and certain assets. The Canadian-based family apparel manufacturer decided not to take on any contracts, store leases or factories as part of the deal.
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