Amazon and Forever 21 linked with American Apparel takeover bids

The retailer declared bankruptcy in November...

Amazon and Forever 21 linked with American Apparel takeover bids

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Amazon and fast fashion chain Forever 21 are reported to be among a number of parties interested in acquiring bankrupt US retailer American Apparel.

Sources close to the talks told Reuters that the companies are both interested in taking control of the struggling fashion chain.

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Canadian apparel maker Gildan Activewear Inc has already put forward a bid of $66m.

The brand's tagline 'Made in America' featured in a number of its advertising campaigns and it manufactures its clothes in California. The state is one of the most expensive regions in the US to manufacture in - it remains to be seen if its production facilities will remain in the US under its new owners.

The result of the bankruptcy auction is expected next week.

The company declared bankruptcy for the second time in November of last year with debts worth $177m.

It was founded in the late 1990s and took on a number social calls, including sport for LGBT rights and a strict "sweatshop-free" policy.