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There's a silver lining to American Apparel's financial woes—that is, if you're Oak, the gothy basics brand that was snapped up by the now-ailing clothing company two years ago. In light of its parent company's financial troubles, Oak's founders are hoping to buy back their brand and keep its brick-and-mortar and online doors open, reports WWD.
The industry trade pub adds that founders Jeff M. Madalena and Louis Terline are offering $600,000 for Oak's remaining inventory, and that the price is higher than what American Apparel would earn in liquidation sales. If the bid is approved, the NYC-based label—which has four US boutiques, including two in LA—will also avoid layoffs of about 40 staff members.
WWD also reports that "at the time of the 2013 sale, subleases for the Oak Los Angeles stores were never signed off on and American Apparel had technically been a month-to-month user of the spaces. The Oak founders now argue in court documents that American Apparel has no right to hold sales at those two stores."
We'll know Oak's fate by December 17th, when a hearing on the issue is scheduled.