American Apparel Inc. filed for bankruptcy less than a year after ending its first stint under court protection, and agreed to sell the brand to Gildan Activewear Inc., a Canadian maker of T-shirts and underwear, for about $66 million, Bloomberg News reported today. American Apparel filed for protection from creditors today, Gildan said in a statement. The Montreal-based company said that it is not buying any stores. American Apparel’s founder, Dov Charney, was fired in 2014 over allegations of misconduct. He fought unsuccessfully to regain control of the business he started as a college student. American Apparel’s results only got worse, and it filed for bankruptcy in October 2015. The retailer shed $200 million in debt and emerged from that bankruptcy early last year when former bondholders, led by Monarch Alternative Capital, took over. But a plan to return to the company’s roots and focus on basic items like T-shirts and skirts wasn’t enough to improve results.
