For the second time in just over a year, American Apparel ( APP) has filed for bankruptcy protection in Delaware. Canada's Gildan Activewear ( GIL) 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) . 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."

Employees of TheStreet are restricted from owning individual securities.

If you liked this article you might like

Dov Charney Wants You to Know That 'Made in America' Is Not Nationalist

11 Companies That Announced Big Job Cuts During Earnings

Stocks Climb in Year's Longest Winning Streak

S&P 500 on Track for Longest Winning Streak of 2015