Gildan is preparing to relaunch American Apparel

After buying the once high-flying retailer for just $88 million at a bankruptcy auction earlier in the year, Gildan Activewear Inc. is now preparing to relaunch American Apparel.

The relaunch will begin with a new e-commerce website within the next two weeks and, behind-the-scenes, there will be increased shipments to wholesalers. The collection will remain inline with the original American Apparel brand and will include t-shirts, sweatshirts, jeans, and more.

"At the end of the day we will do very well with this brand," said chief executive Glenn Chamandy when speaking to Business of Fashion. "This will hopefully be one of the best acquisitions the company has ever made, in terms of return on investment, so we’re very excited about it."

American Apparel once boasted annual revenues of over $600 million but struggled to stay afloat to due a crippling $300 million of debt, dropping sales, and crashing share price.

The founder of American Apparel, Dov Charney, has now set up a new brand called Los Angeles Apparel, which is currently focusing on its wholesale business. Speaking about Dov Charney's brand, Chamandy said: "Good luck to him […] But at the end of the day we're well positioned. We have a significant investment and capital able to support our brand."