Amazon (AMZN) is considering acquiring clothing store American Apparel, Reuters reported on Wednesday. The Los Angeles-based store filed for Chapter 11 bankruptcy in late 2015.
American Apparel's slogan is "Made in the USA" so this potential acquisition could be a way for the e-commerce giant to "ease tensions" with President-elect Donald Trump's administration, noted Fox Business' Elizabeth MacDonald on Thursday morning's "Varney & Company."
Trump has been a strong proponent of keeping jobs in the U.S., even calling out General Motors (GM) for making a Chevy Cruze model in Mexico and then sending it across the border to the U.S. tax free. "Make in U.S.A. or pay big border tax!" he tweeted.
Some are concerned about Trump's relationship with Amazon after he spoke to CNBC in 2016 about antitrust concerns surrounding the company, as well as its CEO Jeff Bezos and his ownership of The Washington Post. "And believe me, if I become president, oh, do they have problems. They're going to have such problems," Trump claimed at the time.
American Apparel has that "Made in the USA" branding, and it's one of the biggest clothing manufacturers in the country, employing 4,500 people, she pointed out. "But does Amazon only want the brand name and do away with the jobs? That's the question. What's the play here for Amazon?"
This story line is a possibility, as Amazon is going to have a "struggle" to get on Trump's good side, Fox Business' Stuart Varney said in agreement.
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