According to Apparel News, Alstyle Apparel is planning to shutter its distribution center in Anaheim, Calif., and is laying off 81 employees.
Montreal-based Gildan Activewear, the company that purchased American Apparel in 2017, acquired Alstyle Apparel back in 2016. The deal reportedly cost Gildan Activewear $110 million.
A spokesman for Gildan Activewear said the facilities at the Anaheim distribution center would be consolidated with a larger facility in the Jarupa Valley in California, which recently launched to ship American Apparel products.
“The employees at the Anaheim facility were provided notice of the upcoming shuttering quite some time ago and were offered retention bonuses as well as severance packages,” wrote Garry Bell, a Gildan Activewear spokesman, in an email to Apparel News. “Additionally, we made an offer to have them relocate to the new facility, which I believe is 35 miles away, with relocation incentives to move. At this point, more than 30 percent have chosen to move to the new facility.”