Amazon and Forever 21 said to mull bidding for American Apparel

Shoppers pass a closed down American Apparel LLC fashion retail store on Oxford Street during the Boxing Day sales in London on Dec 26, 2016.
Shoppers pass a closed down American Apparel LLC fashion retail store on Oxford Street during the Boxing Day sales in London on Dec 26, 2016. PHOTO: BLOOMBERG

NEW YORK (BLOOMBERG) - Amazon.com and Forever 21 are considering making bids for bankrupt retailer American Apparel, according to a person familiar with the matter.

Authentic Brands Group, which owns Aeropostale and Juicy Couture, is also mulling an offer, said the person, who asked not to be identified because the discussions are not public.

American Apparel filed for its second bankruptcy within a year in November with the intent to sell the company. Gildan Activewear, a Canadian T-shirt and underwear maker, made an initial offer of US$66 million (S$95 million) for the brand and inventory, but not any of the company's stores.

Reuters reported the potential bids earlier on Wednesday.

Amazon is already making a push into physical locations. It has bookstores in San Diego, Seattle and Portland. Last year, an executive for a mall operator said Amazon planned to open as many as 400 bookstores. The online retail giant is also testing a convenience store concept in Seattle called Amazon Go.

In addition to American Apparel clothing stores, the company has a wholesale division that sells blank T-shirts and other basics to screen printers. It makes its clothes in the United States at a factory in Los Angeles.