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."