For the second time in just over a year, American Apparel (APP) has filed for bankruptcy protection in Delaware. Canada's Gildan Activewear (GIL - Get Report) unveiled American Apparel's bankruptcy filing as part of its deal to buy the worldwide intellectual property rights of the American Apparel brand for $66 million in cash. "Gildan will be entitled to a breakup fee and certain expense reimbursements if it does not prevail as the successful bidder at any such auction," the Gildan said in a statement. Gildan is a Canadian manufacturer of cotton wear, ranging from T-shirts to socks, and has licensing agreements with New Balance and Under Armour (UA - Get Report) . The company added that it plans to also purchase inventory from American Apparel "to ensure seamless supply of goods in the printwear channel while the company integrates the brand."

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