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American Apparel Rejects Million-Dollar Offer to Buy Oak Stores

photoThe creators for the high-end Oak stores, obtained by American Apparel 2 yrs ago, really want their shops right back.

When they heard that United states Apparel, which filed for section 11 bankruptcy protection on Oct. 5, ended up being intending to shutter the four stores—two in la and two when you look at the nyc area—they supplied American Apparel $600, 000 buying back the small chain.

Us Apparel refused offering, so the store founders, Jeff Madalena and Louis Terline, turned around in mid-November and countered with a $1.1 million proposal. That too had been denied.

But Madalena said the two sides continue steadily to negotiate.

On Nov. 19, the U.S. Bankruptcy legal accepted a request by American Apparel to put on deep-discount product sales at nine American Apparel stores it plans to close and also at its four Oak shops. Nearly all of those American Apparel stores come in ny and scattered across the nation, but two are in California—one in Huntington seashore on Main Street and another within Gilroy Outlet.

American Apparel’s purchase of Oak—an edgy store with expensive fashions—seemed a shock when it ended up being established in 2013. Oak’s product is pricy, and United states Apparel’s items tend to be more affordable.

Oak had only two shops inside ny location when it had been bought by United states Apparel. The purchase price was reduced enough that United states Apparel would not need certainly to through the deal with its filings because of the Securities and Exchange Commission.

During the time of the acquisition, previous United states Apparel Chief Executive Dov Charney said your small retail chain had $5 million in annual profits but could benefit from American Apparel’s retail knowledge and manufacturing facilities to develop profits.

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