New York-based brand Oak has been spending the last months of 2015 negotiating with American Apparel to win back their brand. Although the process has been long-lasting, it seems that all of that work has paid off. Recently confirmed, the trendy Los Angeles retailer and Oak NYC have come to an agreement.
It was recently reported that Oak owners Jeff Madalena and Louis Terline had made two offers to American Apparel to buy back their namesake. The first offer was 600,000 dollars and their second was nearly double totaling 1.1 million dollars. Although the reason wasn’t disclosed, American Apparel rejected both offers. However, Oak’s final offer, which according to Apparel News the amount is withheld from the public, has been officially accepted by American Apparel. The offer was outlined in U.S. Bankruptcy Court documents that were filed Dec. 15. The deal will be revisited during a hearing on Jan. 20, where a U.S. bankruptcy judge has to finalize the offer.
Plans have not yet been released for what will happen to the stores or to the brand once Terline and Madalena retrieve Oak NYC back. Most likely however, the stores will remain open, due to the fact that the reason the two offered to buy the brand back was because American Apparel was planning to shutter Oak’s locations.