American Apparel sells for $103m, not including stores

I’m always amazed at how low IRL companies get valued. But: retail, manufactoring, and a history of funky management:

But fashion wasn’t the only thing to change; the retail business changed, too. The economic downturn was hard on the fashion industry as consumers cut back on spending. And brick-and-mortar stores have struggled as online retailers bite into their sales and target demographics. That can be especially harmful for brands like American Apparel, whose the business model is to open a bevy of stores and rely on foot traffic. “There are too many stores in too many places,” explained Cohen. “Everybody doing business in brick-and-mortar is migrating in some way, shape, or form to the internet. Everyone is seeing a chronic decline in the productivity of their real estate.”

It doesn’t include the stores:

All of this helps explain why the $88 million Gildan deal could be viewed as arguably the last great American Apparel marketing feat. Even with all its financial and legal woes, the company still attracted 12 bids. (Sources told Reuters that Amazon and Forever 21 were considering purchasing as well.) And while Gildan won’t be purchasing any of American Apparel’s 110 U.S. stores—which were also up for sale—the company was willing to pay nearly $90 million just for intellectual property and some equipment. That’s quite a feat given that the brand was built on the premise of selling such basic designs.

Still, that brand, tho.

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