American Apparel clothes are all 40 percent off, retailer will soon shutter stores nationwide

Say farewell to purveyor of pornographic ad campaigns and occasionally cute — if overpriced — clothes, American Apparel.

But before you do that: Say hello to deep discounts.

It was announced Tuesday and confirmed Thursday that Canadian company Gildan Activewear has won a bankruptcy auction to buy the struggling company's intellectual property rights, as well as some equipment.

Because Gildan is not interested in American Apparel retail locations, it's likely the 110 United States stores will shutter by the end of April, once the 100 days remaining on the stores' leases are up.

So get ready for fire sales. All American Apparel merchandise is currently 40% off, and there'll likely be further discounts as stores rush to unload inventory.

RELATED: Notable stores that no longer exist like they used to:

Notable stores that no longer exist like they used to
See Gallery
Notable stores that no longer exist like they used to
Signage is displayed at a Filene's Basement store in Chicago, Illinois, U.S., on Wednesday, Nov. 16, 2011. Bankrupt discount-clothing retailer Syms Corp. and its Filene's Basement LLC unit won court approval to conduct going-out-of-business sales to liquidate their inventory. Photographer: Tim Boyle/Bloomberg via Getty Images
A Circuit City store is seen in Dallas, Texas in this file photo taken June 19, 2008. U.S. electronics retail chain, Circuit City is considering closing at least 150 stores and cutting jobs, the Wall Street Journal said on October 20, 2008, citing people familiar with the company. REUTERS/Jessica Rinaldi/Files (UNITED STATES)
NORRIDGE, IL - JANUARY 30: KB Toys signage is visible atop the entranced to its store January 30, 2004 in Norridge, Illinois. Pittsfield, Massachusetts-based KB Toys says it will close 375 stores nationwide including this Norridge, Illinois store. (Photo by Tim Boyle/Getty Images)
ALEXANDRIA, VA - AUG 14: An Ames Department Store stands August 14, 2002 in Alexandria, Virginia. Ames Chairman and CEO Joseph R. Ettore in announced that the discount chain would close all 327 store locations leaving 22,000 unemployed. (Photo by Mike Theiler/Getty Images)
The Blockbuster movie rental store is open for business in the Denver suburb of Broomfield, Colorado April 6, 2011. Dish Network Corp won Blockbuster Inc in a bankruptcy auction for about $320 million, boosting the satellite TV provider's online features and marketing reach. Dish, the second-largest U.S. satellite TV company after DirecTV, trumped at least three other bidders, including activist investor Carl Icahn, for the one-time leader in video rentals. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS)
A Sports Authority store is shown in Encinitas, California on March 2, 2016. Sports Authority Inc. said it had filed for Chapter 11 bankruptcy protection and hired liquidators to begin closing up to 200 of its 463 locations. REUTERS/Mike Blake
Customers walk into the Hollywood Video store that is scheduled for closing in Springville, Utah, U.S., on Wednesday, May 12, 2010. Movie Gallery Inc., the owner of Hollywood Video stores, plans to shutter operations and liquidate assets after filing for bankruptcy for the second time since 2007. Photographer: George Frey/Bloomberg via Getty Images

Several U.S. locations, as well as storefronts in the U.K. and Canada, were shuttered by year-end 2016: This reporter snagged some red American Apparel jeans for 80% off in Toronto in one such liquidation sale. (The strong U.S. dollar didn't hurt matters.)

But lest us deal-hungry shoppers get too exuberant, it bears remembering that there is a human cost to the $88 million auction sale: thousands of job losses.

Despite its reputation for $18 plain white tees — not to mention the much maligned (and eventually ousted) founder Dov Charney — the company's "made in America" business model helped separate American Apparel from its competitors, many of whom have been criticized for labor rights abuses and unsafe factory conditions overseas.

A little good news: At least one American Apparel knitting and dyeing facility in California has secured a local buyer — which could save about 200 jobs.

Sign up for The Payoff — your weekly crash course on how to live your best financial life.

Read Full Story

From Our Partners