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Just as we suspected, Oak does indeed have an escape plan from American Apparel, which bought the New York-based label in 2013. The LA-based company OK'd a third and final bid by Oak founders Jeff Magdalena and Louis Terline to buy back their business, California Apparel News reports.
Following their initial bid of $600,000 back in November, Magdalena and Terline upped their offer to $1.1 million; their last and undisclosed offer is set to be approved by a judge in a U.S. Bankruptcy Court hearing on January 20th. In court filings, the two co-founders note that their parent company hasn't paid rent for Oak's four stores since early October, notes the industry trade pub. (Ouch.)
For now, Oak's two majorly discounted LA boutiques will remain open through 2016, but it's unclear what the edgy-cool brand has planned beyond next month's hearing. We've reached out to the label for comments and will update when we hear more.