American Apparel has found a buyer for its Garden Grove manufacturing facility — potentially preserving the jobs of at least a portion of the 330 employees there.
The Los Angeles-based fashion brand, which is being sold to Canadian clothing maker Gildan Activewear, said Thursday that it had reached a preliminary agreement to sell the knitting and dyeing facility to Broncs Inc., a Compton textile manufacturer. The deal would be priced between $200,000 and $250,000, an American Apparel spokeswoman said.
Joel Chun, owner of Broncs, said he plans to hire about 200 American Apparel employees who work in knitting, dyeing and finishing. Since Broncs wasn’t able to buy much of the equipment there, he said, the plant will be closed until new machines are delivered. Chun said he hopes to have the facility up and running by March, when Broncs assumes the lease.
Broncs has been in discussions to take over the Garden Grove facility since last year, but American Apparel ended up filing for bankruptcy before the deal closed, Chun said.
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