American Apparel set the date for the bankruptcy auction of its manufacturing, retail and wholesale business, likely delaying layoffs slated to affect as many as 3,457 employees in Southern California, the Los Angeles Times reported today. The Los Angeles clothier, which in November filed for bankruptcy for the second time, told workers yesterday that the auction has been scheduled for Jan. 9 and 12. It does “not anticipate” any layoffs on Jan. 7 — the initial date when cuts were scheduled to occur. After the auction, “we will have more clarity on the go-forward plan,” Craig Simmons, the chief human resources officer, wrote in a letter to employees, “depending on which buyer or buyers succeed, and how they wish to move forward.” Gildan Activewear, a Canadian sportswear firm that has already bid $66 million for American Apparel's intellectual property rights and some other assets, has indicated its interest in maintaining at least a portion of manufacturing in the U.S.
