|American Apparel became known for controversial ads like this one staring then adult film star Faye Reagan|
Beleaguered chain closing metro location
Los Angeles-based American Apparel, the troubled clothing retailer involved in its second bankruptcy filing in two years recently won court approval to close nine stores by the end of the year. The company, which filed for Chapter 11 bankruptcy in October 2015 and emerged in early 2016, filed again this past November.
Separately, Gildan Activewear Inc, a Canadian apparel maker, said it agreed to buy intellectual property rights related to the American Apparel brand and certain assets from the company for about $66 million in cash. Gildan will reportedly not be purchasing any retail store assets.
Controversial American Apparel founder Dov Charney was ousted from the company in 2014, but reports of the company having not made a profit since 2009 suggest the ouster was long overdue.
Nine store will close ahead of an expected January auction, where the company's remaining stores, about 100, are expected to be sold to the highest bidder.
The nine stores that will close before the end of the year are located in New York, Washington, D.C., Seattle, Atlanta, Dallas, Memphis, Santa Cruz, CA, Evanston, IL, and Burlington, VT.
In Atlanta, the company currently operates three stores in Buckhead, Atlantic Station and Little 5 Points. (The company previously operated a store at Tech Square in midtown but it closed in late 2008.) The Buckhead store at The Shops Around Lenox is the flagship of the trio and is the store actively closing. The store, which measures about 6,400 square feet, is currently pretty picked over but is offering remaining merchandise at 90% off.
With such limited inventory, the store expects to close in advance of the December 31st deadline.
At Shops Around Lenox, American Apparel occupied suites 207-212. Given its size and visibility, the spaces will likely be broken up into at least two new suites for other tenants.
Tisha Maley, who previously worked for Simon Property Group and handled leasing for Lenox Square and Phipps Plaza, is today charged with leasing The Shops Around Lenox. Following her departure from Simon, Maley assisted Jamestown in leasing for Ponce City Market. Given her years of experience and Rolodex of retailers, one can surmise American Apparel's replacement(s) will be solid additions to the center.
What would you like to see open in place of American Apparel at Shops Around Lenox? Are you as surprised as I'am to learn the company has not made a profit since 2009? If the other Atlanta area American Apparel locations close, what would you like to see open in their place?
Please share your thoughts below.