MONTREAL -- Gildan Activewear Inc. says it has signed a deal to buy the American Apparel brand for $66 million.
American Apparel filed for Chapter 11 bankruptcy protection on Monday.
Under the deal, Gildan has agreed to acquire the intellectual property rights related to the American Apparel brand.
Gildan will also separately buy inventory from American Apparel to ensure a supply of goods while it integrates the brand.
It is not purchasing any of the company's retail store assets.
The closing of the deal is subject to approvals by the American Apparel bankruptcy process and customary conditions.
