American Apparel’s ‘made in U.S.’ heritage uncertain after deal

Gildan said on Tuesday it will buy manufacturing equipment and intellectual property rights related to American Apparel, but the Canadian company did not assume the leases of its California manufacturing plants, fueling questions over where the clothing will be produced.Reuters reported late on Monday that Gildan had won the bankruptcy auction, which also attracted other bidders such as California-based apparel maker Next Level Apparel and had garnered interest from Amazon.com Inc.

Gildan had originally planned to take some of American Apparel’s manufacturing plants, but ultimately opted against it.Garry Bell, a Gildan spokesman, said the firm would decide where to make the clothing when it completes its integration plan for the brand.”We felt it was best to not assume these lease…