After American Apparel announced in October 2015 that it would be filing a voluntary petition for bankruptcy, the brand now has to let go of one of its co-brands.
Last week the co-founders of NYC based men’s and women’s clothing brand Oak, Louis Terline and Jeff Madalena, announced that they purchased the company they founded back from American Apparel as of 19 January, 2016. Oak joined American Apparel back in 2013, because they decided that merging with the brand would be beneficial to Oak.
Commenting on their exit, Terline and Madalena said: “Once Dov Charney was ousted and new management came in, there weren't many resources available to us and we started talking about an exit.”
The collection is supposed to stay the same and not change in a drastic way, as the co-founders were responsible for all design and creative direction for Oak under American Apparel. Though in the coming months the brand plans on holding promotions to reintroduce customers to the brand and also has its focus set on quickly expanding wholesale and e-commerce. Oak will be retaining its team of 30 employees, while the New York and Los Angeles locations will continue to be open.